Cogeco Câble inc.
TSX : CCA

Cogeco Câble inc.

July 07, 2010 17:10 ET

Cogeco Cable Inc. Secures a Four-Year $750 Million Credit Facility

MONTRÉAL, QUÉBEC--(Marketwire - July 7, 2010) - Cogeco Cable Inc. (TSX:CCA) ("Cogeco Cable") today announced that it entered into a new credit agreement for a $750 million credit facility, with an option to increase to a total amount of up to $1 billion, subject to lenders' participation, in the form of a four-year Term Revolving Facility.

The new facility, which replaces the existing $862.5 million Term Facility coming to maturity on July 28, 2011, was arranged by a group of financial institutions led by Canadian Imperial Bank of Commerce and Bank of Montreal. The new Term Revolving Facility will mature on July 11, 2014, but may be extended by additional one-year periods on an annual basis, subject to lenders' approval. The Term Revolving Facility is indirectly secured by a first priority fixed and floating charge on substantially all present and future real and personal property and undertaking of every nature and kind of the Corporation and certain of its subsidiaries, and provides for certain permitted encumbrances, including purchased money obligations, existing funded obligations and charges granted by any subsidiary prior to the date when it becomes a subsidiary, subject to a maximum amount.

"The fact that Cogeco Cable secured this facility highlights the banking syndicate's support for our strategy, and demonstrates our sound financial position," said Louis Audet, President and CEO of Cogeco Cable.

The new Term Revolving Facility extends Cogeco Cable's borrowing flexibility and provides continued liquidity within a strong capital structure. The facility will be used for general corporate purposes and to facilitate growth opportunities.

ABOUT COGECO CABLE

Cogeco Cable (www.cogeco.ca) is the second largest cable operator in Ontario, Québec and Portugal, in terms of the number of Basic Cable service customers served. Through its two-way broadband cable networks, Cogeco Cable provides its residential customers with Audio, Analogue and Digital Television, as well as HSI and Telephony services. Cogeco Cable also provides its business customers with data networking, e-business applications, video conferencing, web hosting, Ethernet, private line, VoIP, HSI, black fibre, data storage and security, and co-location services and other advanced communication solutions. Cogeco Cable's subordinate voting shares are listed on the Toronto Stock Exchange (TSX:CCA).

Contact Information

  • Cogeco Cable Inc.
    Marie Carrier
    Director, Corporate Communications
    514-764-4700