New Issue: Sun Media $205 million 10-year notes yield 7 7/8%

By Paul A. Harris

St. Louis, Jan. 30 - Sun Media Inc. priced $205 million 7 5/8% senior notes due Feb. 15, 2013 (Ba3/B-) Thursday at 98.286 to yield 7 7/8%, according to a source close to the deal. The principal amount was increased slightly from the announced size of $200 million.

Salomon Smith Barney was the bookrunner.

Proceeds from the Rule 144A notes will be used to repay all borrowings under 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.

Issuer:	Sun Media Inc.
Amount:	$205 million (increased from $200 million)
Maturity:	Feb. 15, 2013
Security description:	Senior notes
Bookrunner:	Salomon Smith Barney
Coupon:	7 5/8%
Price:	98.286
Yield:	7 7/8%
Spread:	381 basis points
Call features:	Callable on Feb. 15, 2008 at 103.813, then at 102.542, 101.271, declining to par on Feb. 15, 2011 and thereafter
Equity clawback:	Until Feb. 15, 2006 for 35% at 107.625
Settlement date:	Feb. 7, 2003
Ratings:	Moody's: Ba3
	Standard & Poor's: B-
Rule 144A Cusip:	866950AA6
Price talk:	8%-8¼%

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