Private Offering of $500 Million 2.991% Senior Secured Notes MONTRAL, Sept. 13, 2021 /CNW Telbec/ - Cogeco Communications Inc. (TSX: CCA) ("Cogeco Communications" or the "Corporation") announced today that it has priced an offering of $500 million aggregate principal amount of 2.991% senior secured notes due September 22, 2031 (the "Notes").
The Notes are being offered through an agency syndicate consisting of BMO Nesbitt Burns Inc. and CIBC World Markets Inc., as joint bookrunners and co-lead managers, and including National Bank Financial Inc., as co-lead manager, and Scotia Capital Inc., Merrill Lynch Canada Inc., Desjardins Securities Inc., RBC Dominion Securities Inc., MUFG Securities (Canada), Ltd., TD Securities Inc. and Casgrain & Company Limited, as co-managers, and are being offered pursuant to a trust indenture to be entered into as of the closing of the offering.
The offering is expected to close on or about September 20, 2021, subject to customary closing conditions. Cogeco Communications intends to use the net proceeds of the offering to fund spectrum auction spend, repay existing indebtedness and for other general corporate purposes.
The Notes will be direct and unsubordinated secured debt obligations of Cogeco Communications and will rank equally and pari passu, with all other secured senior indebtedness of Cogeco Communications.
The Notes have been assigned a rating of "BBB (low)" from DBRS Limited (DBRS Morningstar) with a "Stable" trend and Cogeco Communications expects that the Notes will receive a rating of "BBB-" from Standard & Poor's Ratings Services. The Notes are being offered in Canada on a private placement basis in reliance upon exemptions from the prospectus requirements under applicable securities legislation.
The Notes have not been and will not be qualified for sale to the public under applicable securities laws in Canada and, accordingly, any offer and sale of the Notes in Canada will be made on a basis which is exempt from the prospectus requirements of such securities laws. The Notes have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration under, or an applicable exemption from the registration requirements of, the U.S. Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer to sell or a solicitation of an offer to buy any securities in any jurisdiction where it is unlawful to do so.