Quebecor talks downsized, restructured $300 million seven-year notes

By Paul A. Harris

St. Louis, Nov. 19 - Quebecor World Inc. set price talk for its downsized and restructured $300 million offering of seven-year senior unsecured notes (Caa1/B) on Monday, according to an informed source.

The notes are talked to price with an 11½% coupon for a yield in the 12½% area.

The proposed issue was downsized from $400 million.

The notes will be non-callable. Previously the notes had been structured with four years of call protection.

Pricing is expected on Tuesday.

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

The notes are guaranteed by Quebecor World ULC, Quebecor World (USA) Inc. and Quebecor World Capital LLC.

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 plus accrued and unpaid dividends.

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