New Issue: Quebecor upsizes to $1.36 billion equivalent, prices 10.25 year notes in two parts

By Paul A. Harris

Portland, Ore., Oct. 3 - Quebecor Media Inc. completed a massively upsized $1.36 billion equivalent two-part offering of non-callable 10.25-year senior notes (B2/B+/) on Wednesday, according to a syndicate source.

The deal, which was upsized from $1 billion equivalent, included an $850 million tranche of 5¾% notes that priced at par to yield 5.752%. The yield printed in line with yield talk set in the 5¾% area.

Bookrunners for the dollar-denominated notes were Bank of America Merrill Lynch, Citigroup Global Markets Inc., National Bank of Canada Financial Inc., TD Securities (USA) LLC.

In addition Quebecor priced a C$500 million tranche of 6 5/8% notes at par to yield 6.627%.

The yield came at the tight end of price talk that was set in the 6¾% area.

Bookrunners for the Canadian dollar-denominated tranche were Scotia Capital Inc., Bank of America Merrill Lynch Canada Inc., RBC Dominion Securities Inc. and TD Securities Inc.

The Montreal-based communications and media company plans to use the proceeds to finance the repurchase of C$1 billion of equity from one of the existing shareholders, CDP Capital d'Amerique Investissements Inc., a subsidiary of Caisse de depot et placement du Quebec. Quebecor will also use proceeds to repay part of its 7¾% senior notes due 2016.

Issuer:	Quebecor Media Inc.
Amount:	$1.36 billion equivalent, increased from $1 billion equivalent
Maturity:	Jan. 15, 2023
Securities:	Senior notes
Call protection:	Non-callable
Change-of-control put:	101%
Trade date:	Oct. 3
Settlement date:	Oct. 11
Ratings:	Moody's: B2
	Standard & Poor's: B+
Distribution:	Rule 144A and Regulation S
Marketing:	Quick to market
U.S. dollar-denominated notes
Amount:	$850 million
Bookrunners:	Bank of America Merrill Lynch, Citigroup Global Markets Inc., National Bank of Canada Financial Inc., TD Securities (USA) LLC
Co-managers:	RBC Capital Markets LLC, Scotia Capital (USA) Inc., BMO Capital Markets Corp., CIBC World Markets Corp., Desjardins Securities Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc., Mitsubishi UFJ Securities (USA) Inc., Laurentian Bank Securities Inc.
Coupon:	5¾%
Price:	Par
Yield:	5.752%
Price talk:	5¾% area
Canadian dollar-denominated notes
Amount:	C$500 million
Bookrunners:	Scotia Capital Inc., Bank of America Merrill Lynch Canada Inc., RBC Dominion Securities Inc., TD Securities Inc.
Co-managers:	National Bank Financial Inc., CIBC World Markets Inc., BMO Nesbitt Burns Inc., Goldman Sachs Canada Inc., Desjardins Securities Inc., HSBC Securities (Canada) Inc., Citigroup Global Markets Canada Inc., Laurentian Bank Securities Inc.
Coupon:	6 5/8%
Price:	Par
Yield:	6.627%
Price talk:	6¾% area

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