TVA Group Inc.
TSX : TVA.B

TVA Group Inc.

March 20, 2015 08:45 ET

TVA Group Closes Successful Rights Offering

MONTRÉAL, QUÉBEC--(Marketwired - March 20, 2015) - TVA Group Inc. (TVA or the Corporation) (TSX:TVA.B) announced today the closing of its rights offering, which expired on March 17, 2015, and confirmed the offering generated approximately $110 million in gross proceeds. The Corporation is using the gross proceeds from the rights offering to repay all amounts outstanding (including accrued interests) under a $100 million bridge loan provided by Quebecor Media Inc. (QMI), which was drawn in full for the purpose of funding part of the purchase price for the acquisition of substantially all of the assets of Vision Globale A.R. Ltd., and to pay all offering-related fees and expenses, including the standby commitment fee of 1% of the aggregate gross proceeds of the rights offering payable to QMI. The remaining proceeds will be used for general corporate purposes.

Upon the closing of the offering, TVA issued a total of 19,434,629 Class B shares, non-voting, participating, without par value (Class B Non-Voting Shares), which represents the maximum number of Class B Non-Voting Shares available under the rights offering.

Approximately 62.36% of the Class B Non-Voting Shares were issued in the basic subscription of the rights offering with the balance having been issued in the additional subscription. QMI exercised all of its rights under the basic subscription and participated in the additional subscription of the rights offering, which was available to all shareholders who fully participated in the basic subscription. Since the offering was over-subscribed, QMI was not required to purchase any shares under its standby commitment.

As a result of the rights offering, QMI's now beneficially owns 25,220,852 Class B Non-Voting Shares representing approximately 64.86 % of the outstanding Class B Non-Voting Shares (representing an increase of 24.14% from the 40.72% interest it held before the rights offering). Taking into account the 4,318,512 Class A common shares voting, participating, without par value held by QMI, QMI now beneficially owns an aggregate equity interest in the Corporation of approximately 68.37 %, representing an increase of approximately 16.88% from its pre-rights offering aggregate equity interest.

TVA will mail the certificates representing the Class B Non-Voting Shares acquired through the rights offering to registered subscribers on or about three business days after the closing of the offering.

About TVA Group

TVA Group, a subsidiary of Quebecor Media, is an integrated communications company engaged in the creation, production and distribution of audiovisual products, and in magazine publishing. TVA Group is the largest broadcaster of French-language entertainment, information and public affairs programming and publisher of French-language magazines in North America, and one of the largest private-sector producers of French-language content in North America. Its Class B non-voting shares are listed on the Toronto Stock Exchange under the ticker symbol TVA.B.

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