Quebecor World to start roadshow Wednesday for $400 million seven-year notes

By Paul A. Harris

St. Louis, Nov. 13 - Quebecor World Inc. will start a roadshow on Wednesday for a $400 million offering of seven-year senior unsecured notes, according to an informed source.

The roadshow for the Rule 144A with registration rights and Regulation S deal is scheduled to conclude on Nov. 19.

Citigroup is the left bookrunner. Banc of America Securities LLC, BNP Paribas and JPMorgan are joint bookrunners.

The notes, which come with four years of call protection and a change-of-control put at 101, are guaranteed by Quebecor World ULC, Quebecor World (USA) Inc. and Quebecor World Capital LLC.

The covenants will be the same as those of the company's 9¾% notes due 2015, with the addition of debt incurrence and restricted payments covenants.

Credit ratings remain to be determined.

The Montreal-based marketing and advertising company is concurrently in the market with a $250 million equity offering and a $100 million offering of convertibles.

Proceeds from the notes and convertibles and a portion of the net proceeds from the equity offering will be used to repay the company's bank debt and to redeem its series 5 cumulative redeemable first preferred shares for a redemption price of C$175 million (about $185 million) plus accrued and unpaid dividends.

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