Cogeco Câble inc.
TSX : CCA

January 17, 2007 07:41 ET

Cogeco Cable Inc. Announces $173 Million Offering of Subordinate Voting Shares

TREASURY OFFERING OF SUBORDINATE VOTING SHARES

MONTREAL, QUEBEC--(CCNMatthews - Jan. 17, 2007) -

THIS MEDIA RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Cogeco Cable Inc. (the "Company" or the "Issuer") (TSX:CCA) announced today that it will be issuing 4,500,000 subordinate voting shares (the "Shares") for total proceeds of $173,250,000 on a bought deal basis at a price of $38.50 per Share. Net proceeds from the offering shall be used by the Issuer to repay indebtedness and for general corporate purposes. Under the offering, the Shares will be offered for sale to the public in each of the provinces and territories of Canada.

The underwriting syndicate includes Scotia Capital Inc. acting as bookrunner and is being co-led by GMP Securities L.P., BMO Nesbitt Burns Inc., CIBC World Markets Inc., and includes Desjardins Securities Inc. and National Bank Financial Inc.

The Company has granted the underwriters an over-allotment option exercisable in whole or in part for a period of 30 days following closing of the offering, to purchase up to an additional 500,000 Shares on the same terms as set out above solely to cover over-allotments, if any, and for market stabilization purposes. Should this option be fully exercised, the total gross proceeds of the offering will be $192,500,000. The offering is scheduled to close on or about February 2, 2007, subject to customary conditions.

About Cogeco Cable Inc.

Cogeco Cable (www.cogeco.ca), a telecommunications company offering a diverse range of services to its customers in Canada and in Portugal, is the second largest cable operator in Ontario, Quebec and Portugal, in terms of the number of basic cable service customers served. The Corporation invests in state-of-the-art broadband network facilities, delivers a wide range of services over these facilities with great speed and reliability at attractive prices, and strives to provide both superior customer care and growing profitability to satisfy its customers' varied electronic communication needs. Through its two-way broadband cable networks, Cogeco Cable provides its residential and commercial customers with analog and digital video and audio services, high speed Internet access as well as telephony services. The Corporation provides about 1,649,000 revenue-generating units (RGUs) to approximately 1,439,000 homes passed in its Canadian service territory and about 650,000 RGUs to approximately 829,000 homes passed in its Portuguese service territory. Cogeco Cable's subordinate voting shares are listed on the Toronto Stock Exchange (CCA).

Contact Information

  • Cogeco Cable Inc.
    Pierre Gagne
    Vice President, Finance and Chief Financial Officer
    (514) 874-2600
    or
    Cogeco Cable Inc.
    Marie Carrier
    Director, Corporate Communications
    (514) 874-2600
    Website: www.cogeco.ca