DBRS Assigns BB (high)/RR 3 Instrument and Recovery Ratings to Vidéotron Ltée’s Proposed $200 Million Notes Issuance, Stable Trend

DBRS has today assigned BB (high)/RR3 instrument and recovery ratings to Vidéotron Ltée’s (Vidéotron) proposed $200 million issuance of Senior Notes (Notes). Vidéotron’s Issuer Rating is BB (high). The trends on these ratings are Stable. The Notes have a 10-year term maturing on January 15, 2020.

The offering is being issued by way of an Offering Memorandum dated today with closing expected on or about January 12, 2010. The Notes will be guaranteed by certain of Vidéotron’s existing and future subsidiaries on a senior unsecured basis.

The Notes will be senior unsecured obligations of Vidéotron, ranking equally with all of its existing and future unsecured unsubordinated indebtedness, senior to all of its existing and future subordinated indebtedness, effectively subordinated to all of its existing and future secured indebtedness and structurally subordinated to all of the existing and future liabilities of its subsidiaries which are not guarantors.

DBRS expects Vidéotron to use the proceeds from this issuance to repay drawings under its credit facility and for general corporate purposes.

Note:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating Cable, which can be found on our website under Methodologies.

This is a Corporate (Telecom/Media/Technology) rating.