DBRS Rates Vidéotron Ltée’s C$400 Million Senior Unsecured Notes Issue at BB (high)/RR2, Stable

DBRS has today assigned a rating of BB (high) and RR2 to Vidéotron Ltée’s (Vidéotron or the Company) $400 million Senior Unsecured Notes (the Notes) issuance, which was announced on June 3, 2013. The twelve-year Notes will mature on June 15, 2025, carrying a coupon rate of 5.625%. The Notes will rank equally with all of the Company’s existing and future unsecured unsubordinated indebtedness.

The Notes will be issued by way of an offering memorandum dated June 3, 2013. DBRS expects Vidéotron to use the proceeds from this issue to (i) finance the redemption and retirement of a portion of the Company’s issued and outstanding 9.125% Senior Notes due 2018, on or about July 2, 2013; (ii) to finance the settlement and termination costs, if any, of related hedging contracts; and (iii) for the payment of related transaction fees and expenses.

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

The applicable methodologies are Recovery Ratings for Non-Investment Grade Corporate Issuers (January 2013) and Rating the Communications Industry (April 2011), which can be found on our website under Methodologies.