MONTRÉAL, 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.
ABOUT COGECO COMMUNICATIONS INC.
Cogeco Communications Inc. is a communications corporation. It
is the 8th largest cable operator in North America, operating in Canada under the Cogeco Connexion name in
Québec and Ontario, and in
the United States under the
Atlantic Broadband brand in 12 states. The Corporation provides
residential and business customers with Internet, video and
telephony services through its two-way broadband fibre networks.
Cogeco Communications Inc. subordinate voting shares are listed on
the Toronto Stock Exchange (TSX: CCA).
Forward-Looking Statements
Certain statements in this press release may constitute
forward-looking information within the meaning of securities laws.
Forward-looking information may relate to Cogeco Communications,
future outlook and anticipated events, business, operations,
financial performance, financial condition or results and, in some
cases, can be identified by terminology such as "may"; "will";
"should"; "expect"; "plan"; "anticipate"; "believe"; "intend";
"estimate"; "predict"; "potential"; "continue"; "foresee", "ensure"
or other similar expressions concerning matters that are not
historical facts. In particular, statements regarding Cogeco
Communications' objectives and strategies are forward-looking
statements. These statements are based on certain factors and
assumptions including expected growth, results of operations,
performance and business prospects and opportunities, which Cogeco
Communications believes are reasonable as of the current date.
While management considers these assumptions to be reasonable based
on information currently available to Cogeco Communications, they
may prove to be incorrect. Forward-looking information is also
subject to certain factors, including risks and uncertainties that
could cause actual results to differ materially from what Cogeco
Communications currently expects. These factors include risks such
as competitive risks, business risks (including potential
disruption to our supply chain), regulatory risks, public health
crisis and emergencies such as the current COVID-19 pandemic,
technology risks (including cybersecurity risks), financial risks
(including variations in currency and interest rates), economic
conditions, human-caused and natural threats to our network,
infrastructure and systems, community acceptance risks, ethical
behavior risks, ownership risks and litigation risks, many of which
are beyond Cogeco Communications' control. Therefore, future events
and results may vary significantly from what management currently
foresees. For more exhaustive information on these risks and
uncertainties, the reader should refer to the "Uncertainties and
Main Risk Factors" sections of Cogeco Communications' 2020 annual
MD&A and of the third quarter of fiscal 2021 MD&A. The
reader should not place undue importance on forward-looking
information and should not rely upon this information as of any
other date. While management may elect to, Cogeco Communications is
under no obligation and does not undertake to update or alter this
information at any particular time, except as may be required by
law.
SOURCE Cogeco Communications Inc.