/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR DISSEMINATION IN THE U.S./
MONTRÉAL, Feb. 13,
2023 /CNW/ - Cogeco Communications Inc. (TSX: CCA)
("Cogeco Communications" or the "Corporation") announced today that
it has priced an offering of $300 million aggregate principal
amount of 5.299% senior secured notes due February 16, 2033 (the "Notes").
The Notes are being offered through an agency syndicate
consisting of BMO Nesbitt Burns Inc. and CIBC World Markets Inc.,
as joint bookrunners and co-lead managers, and including National
Bank Financial Inc., as co-lead manager, and Scotia Capital Inc.,
Merrill Lynch Canada Inc., Desjardins Securities Inc., RBC Dominion
Securities Inc., MUFG Securities (Canada), Ltd., TD Securities Inc. and Casgrain
& Company Limited, as co-managers.
The offering is expected to close on or about February 16, 2023, subject to customary closing
conditions. Cogeco Communications intends to use the net proceeds
of the offering to repay existing indebtedness and for other
general corporate purposes.
The Notes will be direct and unsubordinated secured debt
obligations of Cogeco Communications and will rank equally and
pari passu, with all other secured senior indebtedness of
Cogeco Communications.
The Notes have been assigned a provisional rating of "BBB (low)"
from DBRS Limited (DBRS Morningstar) with a "Stable" trend and
Cogeco Communications expects that the Notes will receive a rating
of "BBB-" from Standard & Poor's Ratings Services. The
Notes are being offered in Canada
on a private placement basis in reliance upon exemptions from the
prospectus requirements under applicable securities
legislation.
The Notes have not been and will not be qualified for sale to
the public under applicable securities laws in Canada and, accordingly, any offer and sale of
the Notes in Canada will be made
on a basis which is exempt from the prospectus requirements of such
securities laws. The Notes have not been and will not be registered
under the United States Securities Act of 1933, as amended (the
"U.S. Securities Act"), or the securities laws of any other
jurisdiction, and may not be offered or sold in the United States absent registration under,
or an applicable exemption from the registration requirements of,
the U.S. Securities Act. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy, nor shall
there be any offer to sell or a solicitation of an offer to buy any
securities in any jurisdiction where it is unlawful to do so.
ABOUT COGECO COMMUNICATIONS
INC.
Rooted in the communities it serves, Cogeco Communications Inc.
is a growing competitive force in the North American
telecommunications sector with a legacy of more than 65 years.
Through its business units Cogeco Connexion and Breezeline, Cogeco
Communications provides Internet, video and phone services to 1.6
million residential and business customers in Québec and
Ontario in Canada as well as in thirteen states in
the United States. Cogeco
Communications Inc.'s subordinate voting shares are listed on the
Toronto Stock Exchange (TSX: CCA)
Forward-Looking
Statements
Certain statements in this press release may constitute
forward-looking information within the meaning of securities laws.
Forward-looking information may relate to Cogeco Communications,
future outlook and anticipated events, business, operations,
financial performance, financial condition or results and, in some
cases, can be identified by terminology such as "may"; "will";
"should"; "expect"; "plan"; "anticipate"; "believe"; "intend";
"estimate"; "predict"; "potential"; "continue"; "foresee", "ensure"
or other similar expressions concerning matters that are not
historical facts. In particular, statements with
respect to the Offering and the intended timing and completion
thereof, and the expected use of the net proceeds of the Offering,
and statements regarding Cogeco Communications' objectives and
strategies are forward-looking statements. These statements are
based on certain factors and assumptions including expected growth,
results of operations, performance and business prospects and
opportunities, which Cogeco Communications believes are reasonable
as of the current date. While management considers these
assumptions to be reasonable based on information currently
available to Cogeco Communications, they may prove to be incorrect.
Forward-looking information is also subject to certain factors,
including risks and uncertainties that could cause actual results
to differ materially from what Cogeco Communications currently
expects. These factors include risks such as competitive risks
(changing competitive ecosystem, disruptive competitive strategies
adopted by our competitors), business risks (including potential
disruption to our supply chain caused by economic geopolitical
instability resulting from the war in Ukraine and other contributing factors,
increasing transportation lead times, scarcity and shortage of
input materials and key telecommunication equipment and competition
for limited resources), regulatory risks, technology risks
(including cybersecurity), financial risks (including variations in
currency and interest rates), economic conditions (including
elevated inflation reaching historical highs pressuring revenue,
due to reduced consumer spending, and increasing costs),
human-caused and natural threats to our network (including
increased frequency of extreme weather events with the potential to
disrupt operations), infrastructure and systems, community
acceptance risks, ethical behavior risks, ownership risks,
litigation risks and public health and safety, many of which are
beyond Cogeco Communications' control. Therefore, future events and
results may vary significantly from what management currently
foresees. For more exhaustive information on these risks and
uncertainties, the reader should refer to the "Uncertainties and
Main Risk Factors" sections of Cogeco Communications' 2022 annual
MD&A and of the first quarter of fiscal 2023 MD&A. The
closing of the Offering is subject to general market and other
conditions and there can be no assurance that the Offering will be
completed or that the terms of the Offering will not be modified.
The reader should not place undue importance on forward-looking
information and should not rely upon this information as of any
other date. While management may elect to, Cogeco Communications is
under no obligation and does not undertake to update or alter this
information at any particular time, except as may be required by
law.
SOURCE Cogeco Communications Inc.