Vidéotron Ltée
TSX : QBR.SV.B
TSX : QBR.MV.A

September 16, 2005 11:33 ET

Videotron Ltee Announces That it Has Successfully Completed its Offering of US$175 Million of Senior Notes

MONTREAL, QUEBEC--(CCNMatthews - Sept. 16, 2005) - Videotron Ltee announced today that it has successfully closed its private offering of US$175 million aggregate principal amount of 6 3/8% Senior Notes due December 15, 2015, which were sold at a slight discount and result in an effective yield of 6.444%. The net proceeds from the sale of the Senior Notes amount to US$171.8 million (CDN$203.6 million) and will be used to repay CDN$79 million under Videotron's revolving credit facility, being all amounts outstanding thereunder, and to pay a dividend of CDN$100.0 million to Quebecor Media Inc., Videotron's parent company. The remainder of such net proceeds will be used for other general corporate purposes.

The President and Chief Executive Officer of Videotron, Mr. Robert Depatie, said: "We are once again very pleased with the market reception which this offering of Senior Notes enjoyed, reflecting investors' acknowledgement of Videotron's robust financial condition and operating performance."

"After conversion into Canadian dollars, the interest coupon for this issue of Senior Notes of Videotron will be 5.98%, representing a very attractive effective interest rate of 6.05% after taking into account the slight discount at issuance", commented Jacques Mallette, Executive Vice President and Chief Financial Officer of Quebecor Media Inc.

The offering was made on a private placement basis to qualified institutional buyers in the United States in reliance upon Rule 144A under the United States Securities Act of 1933, as amended, or the U.S. Securities Act. The new Senior Notes have not been and will not be registered under 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.

Videotron ltee (www.videotron.com), a wholly-owned subsidiary of Quebecor Media Inc., is an integrated communications company engaged in cable television, interactive multimedia development, Internet access services and residential telephone service. Videotron is a leader in new technologies with its illico interactive television system and its broadband network, which supports high-speed cable Internet access, analog and digital cable television, and other services. Videotron serves 1,459,000 cable television customers in Quebec; including over 411,000 illico customers as of August 31, 2005. Videotron is also the Quebec leader in high-speed Internet access, with 591,000 customers to its cable modem and dial-up services. Videotron provides residential telephone service to more than 75,000 customers in Montreal, Quebec City, Laval and Montreal South Shore.

Contact Information

  • Quebecor Inc.
    Jacques Mallette
    Executive Vice President and Chief Financial Officer
    (514) 380-1948
    or
    Quebecor Inc.
    Luc Lavoie
    Executive Vice President, Corporate Affairs
    (514) 380-1974
    Portable: (514) 886-7665
    lavoie.luc@quebecor.com