Quebecor World Issues New Series of Redeemable Preferred Shares
Press release from the issuing company
Montreal, Canada – 2/11/01 - Quebecor World Inc. has today entered into an agreement with a syndicate of underwriters led by BMO Nesbitt Burns Inc., RBC Dominion Securities Inc. and Scotia Capital Inc. under which the underwriters have agreed to buy 6,000,000 6.75% Cumulative Redeemable First Preferred Shares Series 4 at a price of $25.00 per share, for aggregate proceeds of $150,000,000.
Quebecor World Inc. has also granted the underwriters an option to purchase an additional 2,000,000 preferred shares, exercisable in whole or in part by the underwriters at any time until 24 hours prior to Closing. The maximum gross proceeds raised under the offering will be $200,000,000 should the underwriters’ option be exercised in full. This represents approximately 2% of the capital structure of Quebecor World. The preferred shares will be available in Canada only and the expected closing date of the issue is February 28, 2001.
The net proceeds from the offering will be used to invest in capital expenditures and to fund general corporate purposes. According to Christian Paupe, Executive Vice President of Quebecor World: “This financing represents a great opportunity to diversify our funding sources and to further reinforce our capital for future growth.”
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