Quebecor World USA tenders for up to 50.1% of Quebecor World Capital's private notes

By Jennifer Chiou

New York, Aug. 3 - Quebecor World (USA) Inc., a wholly owned subsidiary of Quebecor World Inc., announced the start of a tender offer for up to a total of 50.1% of Quebecor World Capital Corp.'s 8.42% senior notes, series A, due July 15, 2010, 8.52% senior notes, series B, due July 15, 2012, 8.54% senior notes, series C, due Sept. 15, 2015 and 8.69% senior notes, series D, due Sept. 15, 2020.

The tender offer is for up to $115.982 million total of 8.42% notes and 8.52% notes as well as up to $42.585 million total of 8.54% notes and 8.69% notes.

The company is also soliciting consents to amend the indentures.

The consent deadline is midnight ET on Aug. 16. The tender offer expires at midnight ET on Aug. 30.

The Montreal-based commercial printer said that if it receives tenders exceeding the maximum amounts, it will accept them on a pro rata basis.

Those who tender by the early deadline will receive a premium plus an early tender premium of $50.00 and a $2.50 consent fee for the series A and B notes and $5.00 for the series C and D notes, which is included in the payout. The premium will be equal to a make-whole amount, minus the early tender premium and consent fee. The make-whole amount is future cash flows discounted at Treasuries plus 50 basis points.

Those who tender after the early deadline will not receive the early tender premium.

The company said it will also pay accrued interest up to but excluding the settlement date.

Holders may also deliver consents without tendering.

The company needs consents from holders of a majority of the combined series A and series B notes and a majority of the combined series C and series D notes.

Banc of America Securities LLC is the dealer manager (call collect 312 828-5846). Global Bondholder Services Corp. is the information agent and depositary (866 470-4300 or call collect 212 430-3774).

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