MONTREAL, QUEBEC--(Marketwired - April 15, 2013) - Cogeco Cable Inc. (TSX:CCA) (the "Company" or "Cogeco Cable") announced today that it proposes to offer, subject to market and other conditions, US$400.0 million aggregate principal amount of senior unsecured notes due 2020 (the "notes") in a private offering.
The notes will be guaranteed by the Company's wholly-owned restricted subsidiaries that also guarantee the Company's obligations under its senior secured credit facilities and senior secured notes and debentures and any of its restricted subsidiaries that guarantees in the future any other indebtedness of the Company or any subsidiary guarantor.
The Company intends to use the net proceeds from the offering together with borrowings under one of its senior secured credit facilities to repay the term loan tranches of the senior secured credit facilities the Company entered into in connection with its acquisition of PEER 1 Network Enterprises, Inc. in January 2013.
The notes and guarantees have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"). The notes and guarantees have not been, and will not be, qualified for sale to the public under applicable Canadian securities laws. Accordingly, the notes and guarantees will be offered only to "qualified institutional buyers" (as defined under Rule 144A under the Securities Act in accordance with Rule 144A under the Securities Act) and to non-U.S. persons outside of the United States in compliance with Regulation S under the Securities Act. The offering will be made on a private placement basis to accredited investors in one or more provinces of Canada pursuant to exemptions from the prospectus requirements of applicable Canadian securities laws.
This press release does not constitute an offer to sell or the solicitation of an offer to buy notes and guarantees in any jurisdiction in which such an offer or sale would be unlawful.
ABOUT COGECO CABLE
Cogeco Cable is a telecommunications corporation and is the 11th largest hybrid fibre coaxial cable operator in North America operating in Canada under the Cogeco Cable brand name in Quebec and Ontario, and in the United States through its subsidiary Atlantic Broadband in Western Pennsylvania, South Florida, Maryland, Delaware and South Carolina. Its two-way broadband cable networks provide to its residential and small business customers Analogue and Digital Television, High Speed Internet (HSI) and Telephony services. Through its subsidiaries Cogeco Data Services and PEER 1 Hosting, Cogeco Cable provides its commercial customers a suite of IT hosting, information and communications technology services (Data Centre, Co-location, Managed Hosting, Cloud Infrastructure and Connectivity), with 23 data centres, extensive fibre networks in Montreal and Toronto as well as points-of-presence in North America and Europe. Cogeco Cable's subordinate voting shares are listed on the Toronto Stock Exchange (TSX:CCA). For more information about Cogeco Cable and its subsidiaries visit cogeco.ca, cogecodata.com, peer1.com and peer1hosting.co.uk.
NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained or incorporated by reference in this press release may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Cogeco Cable's 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 addition, statements regarding Cogeco Cable's future operating results and economic performance and its 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 Cable believes are reasonable as of the current date. While management considers these assumptions to be reasonable based on information currently available to Cogeco Cable, they may prove to be incorrect. Cogeco Cable cautions the reader that the economic downturn experienced over the past few years makes forward-looking information and the underlying assumptions subject to greater uncertainty and that, consequently, they may not materialize, or the results may significantly differ from Cogeco Cable's expectations. It is impossible for Cogeco Cable to predict with certainty the impact that the current economic uncertainties may have on future results. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what Cogeco Cable currently expects. These factors include technological changes, changes in market and competition, governmental or regulatory developments, general economic conditions, the development of new products and services, the enhancement of existing products and services, and the introduction of competing products having technological or other advantages, many of which are beyond Cogeco Cable's control. Therefore, future events and results may vary significantly from what management currently foresee. For more exhaustive information on these risks and uncertainties, the reader should refer to the risk factors described in the management's discussion and analysis of Cogeco Cable for the year ended August 31, 2012 and management's discussion and analysis of Cogeco Cable for the six months ended February 28, 2013. 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 Cable 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.