Postmedia Network Canada Corp. (“Postmedia” or the “Company”) today
announced that, further to its announcement of the proposed acquisition
of Sun Media Corporation’s English language newspapers, specialty
publications and digital properties (“Sun Media”) on October 6, 2014, it
has closed and issued debt subscription receipts resulting in total
gross proceeds to the Company of $140 million. The subscription receipts
will bear interest at 8.25% per annum and are exchangeable for an equal
amount of the Company’s 8.25% Senior Secured Notes due 2017 (the
“Notes”) upon closing of the Sun Media acquisition without further
consideration, subject to certain conditions.
Postmedia also announced that it has completed the consent solicitation
process with the holders of its existing Notes to approve, amongst other
things, amendments to the existing Note indenture required to facilitate
the incremental funding of the additional Notes. The Company received
consents representing approximately 97% of the outstanding Notes.
Note: All dollar amounts are expressed in Canadian dollars.
About Postmedia Network Canada Corp.
Postmedia Network
Canada Corp. (TSX:PNC.A, PNC.B) is the holding company that owns
Postmedia Network Inc., the largest publisher by circulation of paid
English-language daily newspapers in Canada, representing some of the
country’s oldest and best known media brands. Reaching millions of
Canadians every week, Postmedia engages readers and offers advertisers
and marketers integrated solutions to effectively reach target audiences
through a variety of print, online, digital, and mobile platforms.
Forward-Looking Information
This news release may include
information that is “forward-looking information” under applicable
Canadian securities laws and “forward-looking statements” within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995.
The Company has tried, where possible, to identify such information and
statements by using words such as “believe,” “expect,” “intend,”
“estimate,” “anticipate,” “may,” “will,” “could,” “would,” “should” and
similar expressions and derivations thereof in connection with any
discussion of future events, trends or prospects or future operating or
financial performance. Forward-looking statements in this news release
include statements with respect to the acquisition of certain Sun Media
publications and the exchange of subscription receipts for Notes. By
their nature, forward-looking information and statements involve risks
and uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. These risks and
uncertainties include the possibility that the Sun Media acquisition,
including the related financings, will not close (including, without
limitation, as a result of the failure to gain regulatory approvals).
For a complete list of our risk factors please refer to the section
entitled “Risk Factors” contained in our annual management’s discussion
and analysis for the years ended August 31, 2014, 2013 and 2012.
Although the Company bases such information and statements on
assumptions believed to be reasonable when made, they are not guarantees
of future performance and actual results of operations, financial
condition and liquidity, and developments in the industry in which the
Company operates, may differ materially from any such information and
statements in this press release. Given these risks and uncertainties,
undue reliance should not be placed on any forward-looking information
or forward-looking statements, which speak only as of the date of such
information or statements. Other than as required by law, the Company
does not undertake, and specifically declines, any obligation to update
such information or statements or to publicly announce the results of
any revisions to any such information or statements.
Copyright Business Wire 2014