Quebecor Media gets required consents for 11 1/8% notes, 13¾% notes

By Jennifer Chiou

New York, Dec. 30 - Quebecor Media Inc. said it received the required consents to amend the indentures of its $586.81 million of 11 1/8% senior notes due July 15, 2011 and $282.875 million principal amount at maturity of 13¾% senior discount notes due July 15, 2011.

The consent deadline was 5 p.m. ET on Dec. 30.

Quebecor said the amendments eliminate all restrictive covenants and events of default. The company said it executed supplemental indentures, which will not become effective until the notes are purchased.

For each $1,000 principal amount of the 11 1/8% notes, Quebecor is offering the present value on the early settlement date of the $1,055.63 call price on the July 15, 2006 first call date plus interest payments up to the first call date, discounted using 50 basis points over the yield on the 7% U.S. Treasury note due July 15, 2006, minus accrued interest from the last interest payment date up to but excluding the early settlement date.

For each $1,000 principal amount at maturity of the discount notes, Quebecor is offering the present value on the early settlement date of the $1,068.75 call price on the July 15, 2006 first call date plus interest payments up to the first call date, discounted using 50 basis points over the yield on the 7% U.S. Treasury note due July 15, 2006.

Holders of the 11 1/8% notes will also receive accrued interest up to but excluding the settlement date.

Pricing will be set at 2 p.m. ET at least one day after the consent date and two days before the expiration.

The total amounts include the $30.00 per $1,000 consent payment.

The tenders end at 12:01 a.m. ET on Jan. 18.

The Montreal-based media company needs consents from the holders of a majority of each series of notes.

The tender is also subject to Quebecor Media obtaining financing to fund the offers.

The dealer manager is Corporate and Investment Banking (800 558-3745 or call collect 212 723-6106). Global Bondholder Services Corp. is the information agent and the depositary (866 470-4300 or call collect 212 430-3774).

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