DBRS: Vidéotron Prices Notes Offering and Raises Amount to $300 Million

DBRS notes today that Vidéotron Ltée (Vidéotron) has announced further details of its recent senior notes issue, which has been increased to $300 million from $200 million. DBRS had assigned BB (high)/RR3 instrument and recovery ratings to Vidéotron’s issuance when it was announced yesterday. Vidéotron’s Issuer Rating is BB (high). The trends on these ratings are Stable.

The $300 million 7.125% notes mature on January 15, 2020 (the Notes). The Notes, which were offered by way of an Offering Memorandum, are expected to close on or around January 13, 2010, and were priced at par for an effective yield of 7.126%.

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 senior secured credit facility and for general corporate purposes.

Notes:
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.