Power Corporation of Canada
TSX : POW

Power Corporation of Canada

April 15, 2009 19:05 ET

Power Corporation of Canada: Issue of Debentures

Readers are referred to the section entitled "Forward-looking Statements" at the end of this release.

MONTREAL, QUEBEC--(Marketwire - April 15, 2009) - NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Power Corporation of Canada (TSX:POW) announced today that it has priced the issuance of an aggregate principal amount of $400 million debentures (the "Debentures") consisting of $250 million principal amount of 7.57% debentures due April 22, 2019 (the "10 Year Debentures") and $150 million principal amount of 8.57% debentures due April 22, 2039 (the "30 Year Debentures"). The Debentures will be offered through a group of agents to be led by BMO Nesbitt Burns Inc. and Scotia Capital Inc.

The 10 Year Debentures will be dated April 20, 2009 and will mature on April 22, 2019. Interest on the 10 Year Debentures at the rate of 7.57% per annum will be payable semi-annually in arrears in April and October in each year, commencing October 22, 2009, until April 22, 2019. The 10 Year Debentures have been priced to provide a yield to maturity of 7.578%.

The 30 Year Debentures will be dated April 20, 2009 and will mature on April 22, 2039. Interest on the 30 Year Debentures at the rate of 8.57% per annum will be payable semi-annually in arrears in April and October in each year, commencing October 22, 2009, until April 22, 2039. The 30 Year Debentures have been priced to provide a yield to maturity of 8.577%.

The credit rating for senior unsecured Power debentures assigned by S&P is A and by DBRS is A(High).

The offering of Debentures is expected to close on or about April 20, 2009. The net proceeds will be used to supplement the Corporation's financial resources and for general corporate purposes.

The offering will be made pursuant to a prospectus supplement to Power's short form base shelf prospectus dated November 18, 2008. The supplement, once filed, will be available on SEDAR at www.sedar.com.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Power Corporation of Canada (TSX: POW) is a diversified international management and holding company with interests in the financial services industry in North America and Europe. Through affiliates, Power holds diversified industrial interests in Europe and China.

Forward-looking Statements

Certain statements in this News Release, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect the Corporation's and its subsidiaries' current expectations. Forward-looking statements are provided for the purposes of assisting the reader in understanding the Corporation's financial position and results of operations as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of the Corporation and its subsidiaries, as well as the outlook for North American and international economies, for the current fiscal year and subsequent periods. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes", "estimates", "seeks", "intends", "targets", "projects", "forecasts" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could".

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances.

By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of material factors, many of which are beyond the Corporation's and its subsidiaries' control, affect the operations, performance and results of the Corporation and its subsidiaries, and their businesses, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, management of market liquidity and funding risks, changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates), the effect of applying future accounting changes (including adoption of International Financial Reporting Standards), business competition, operational and reputational risks, technological change, changes in government regulation and legislation, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, the Corporation's and its subsidiaries' ability to complete strategic transactions, integrate acquisitions and implement other growth strategies, and the Corporation's and its subsidiaries' success in anticipating and managing the foregoing factors.

The reader is cautioned that the foregoing list of factors is not exhaustive of the factors that may affect the Corporation's and its subsidiaries' forward-looking statements. The reader is also cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements.

Other than as specifically required by law, the Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

Additional information about the risks and uncertainties of the Corporation's business is provided in its disclosure materials, including its most recent Management Discussion and Analysis of Operating Results and Annual Information Form, filed with the securities regulatory authorities in Canada, available at www.sedar.com.

Contact Information

  • Power Corporation of Canada
    Mr. Edward Johnson
    Senior Vice-President, General Counsel and Secretary
    514-286-7400