Quebecor Media Inc.

Quebecor Media Inc.

January 11, 2006 20:55 ET

Quebecor Media Inc.: Announcement

MONTREAL, QUEBEC--(CCNMatthews - Jan. 11, 2006) - Quebecor Media Inc. today announced that, in connection with a refinancing plan and the previously announced tender offers for its outstanding 11 1/8 % Senior Notes due July 15, 2011 and 13 3/4 % Senior Discount Notes due July 15, 2011, it has priced a private placement of New Senior Notes. The offering will consist of US$525 million aggregate principal amount of unsecured 7.750% Senior Notes due March 15, 2016. The New Senior Notes will be sold at par with a coupon of 7.750%.

The New Senior Notes have not been and will not be registered under the United States Securities Act of 1933, as amended, or the U.S. Securities Act, and may not be offered or sold within the United States except pursuant to a registration statement or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act.

Quebecor Media intends to apply the net proceeds of the offering, together with funds available under a new secured credit facility expected to be entered into concurrently with the close of the offering and funds available from borrowings of Quebecor Media's subsidiaries, to the purchase and retirement of its outstanding Senior Notes and Senior Discount Notes under the tender offers, to the termination of certain related currency and interest rate swaps, to the repayment of an existing secured revolving credit facility and to the payment of a dividend to its shareholders.

This announcement is for informational purposes only and is neither an offer to sell or a solicitation of an offer to purchase New Senior Notes, nor an offer to purchase or a solicitation of an offer to sell any Senior Notes or Senior Discount Notes.

Quebecor Media Inc., a company incorporated in Canada under the Companies Act (Quebec), is one of Canada's largest media companies. Its principal lines of business are cable, newspaper publishing, television broadcasting, business telecommunications, book, magazine and video retailing and publishing, distribution and music recording, and new media services.

Forward-Looking Statements

Certain statements contained herein, including statements that are not historical facts, may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Quebecor Media's current views or assumptions with respect to future events, plans, objectives and financial performance. These matters involve known and unknown risks and uncertainties that could cause Quebecor Media's actual results, outcomes or performance to differ materially from those expressed or implied in the forward-looking statements. Some important factors that could affect Quebecor Media's future results, financial position and cash flows and could cause actual results to differ materially from those expressed in these forward-looking statements include, but are not limited to (i) general economic, financial or market conditions; (ii) the intensity of competitive activity in the industries in which Quebecor Media operates; (iii) unanticipated higher capital spending required to address continued development of competitive alternative technologies; (iv) variations in the cost, quality and variety of our television programming, (v) changes in Quebecor Media's ability to obtain services and equipment critical to its operations; (vi) labor disputes or strikes; and (vii) changes in laws and regulations, or in their interpretations, which could result in, among other things, the loss (or reduction in value) of Quebecor Media's licenses or markets or in an increase in competition, compliance costs or capital expenditures.

It is not possible to identify or predict all such factors. Consequently, while this list of factors is considered representative, no such list should be considered an exhaustive statement of all potential material risks and uncertainties. Further details and descriptions of these and other factors that could cause actual results to differ materially from results expressed in these forward-looking statements are disclosed in our Annual Report on Form 20-F for the fiscal year ended December 31, 2004, including under its sections "Forward-Looking Statements" and "Risk Factors," as well as in our filings from time to time with the SEC. Holders of Notes are encouraged to review these filings. Actual results could differ materially from expectations expressed in the forward-looking statements if one or more of the underlying assumptions and expectations proves to be inaccurate or is unrealized.

Contact Information

  • Quebecor Media Inc.
    Mark D'Souza
    Vice President, Finance
    (514) 380-1912
    Quebecor Inc.
    Luc Lavoie
    Executive Vice President, Corporate Affairs
    (514) 380-1974 or (514) 886-7665 (cell)