Quebecor World seeks loan amendment to reduce size, extend tenor, loosen covenants

By Sara Rosenberg

New York, Nov. 13 - Quebecor World Inc. is looking to amend its credit facility to reduce the size to $375 million, extend the maturity by one year to January 2010 and get greater financial flexibility under covenants, according to a company news release.

The amendment is conditioned on the completion of an equity offering, an about $400 million senior note offering and an about $100 million convertibles offering.

Proceeds from the equity, notes and convertibles will be used to repay debt under the credit facility and redeem series 5 cumulative redeemable first preferred shares.

Any remaining net proceeds will be used for general corporate purposes, including the repayment of additional indebtedness.

Quebecor World is a Montreal-based provider of marketing and advertising services to retailers, catalogers, branded-goods companies and other businesses, as well as print services for publishers.

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