Sun Media $200 million notes talked at 8%-8¼%, pricing Thursday

By Paul A. Harris

St. Louis, Jan. 28 - Price talk of 8%-8¼% emerged Tuesday on Sun Media Corp.'s upcoming sale of $200 million 10-year senior notes (Ba3/B-), according to a source close to the deal.

The offering is expected to price Thursday.

Salomon Smith Barney is the bookrunner.

The Rule 144A notes are non-callable for five years.

The company is also taking out a C$385 million credit facility.

Proceeds will be used to repay all borrowings under the existing credit facilities, redeem two series of senior subordinated notes and pay a C$220 million dividend to parent Quebecor Media Inc. (of which C$150 million will ultimately be used to reduce Videotron Ltee's long-term debt).

The issuer is a Toronto media company.

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