DBRS Rates Quebecor Media Inc. US$850 Million and C$500 Million Senior Notes at BB (low), RR4, with Stable Trend

DBRS has today assigned an instrument rating of BB (low) and a recovery rating of RR4, with a Stable trend, to Quebecor Media Inc.’s (QMI or the Company) Senior Notes due 2023, which include:

(1) US$850 million 5 3/4% notes, due January 15, 2023; and

(2) $500 million 6 5/8% notes, due January 15, 2023.

The Senior Notes will be unsecured obligations ranking pari passu with QMI’s other senior unsecured indebtedness. Proceeds from the offering are expected to be used to finance (i) the repurchase for cancellation from CDP Capital d’Amérique Investissements Inc. (CDP Capital), a subsidiary of Caisse de dépôt et placement du Québec, of approximately 20,351,307 common shares of QMI (representing approximately 36.4% of CDP Capital’s interest in the Company), for an aggregate purchase price of $1 billion, payable in cash, as part of previously announced equity transactions with CDP Capital; (ii) the repayment of a portion of QMI’s issued and outstanding 7 3/4% Senior Notes due 2016, issued in 2007; and (iii) in each case, for the payment of related transaction fees and expenses and, if applicable, to finance the settlement and termination of related hedging contracts.

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

The applicable methodologies are Rating the Newspaper and Magazine Publishing Industry, Rating the Communications Industry, Rating the Printing Industry, DBRS Criteria: Rating Leveraged Finance and Rating Holding Companies and Their Subsidiaries, which can be found on our website under Methodologies.