Quebecor World Announces New Terms in its Bank Credit Facility, Proceeds with the Redemption of Some Senior Notes
Press release from the issuing company
Montréal, Canada - September 28 2007 - Quebecor World Inc. today announced that it has agreed to new terms in its syndicated bank credit facility. The amendment includes modification of the terms to provide financial flexibility through to maturity of the agreement in January, 2009. As part of the new agreement the Company has agreed to a $750 million facility, of which a portion will be secured by a lien on assets. The amendment also includes a commitment to reduce the facility to $500 million by July 1, 2008 and provides certain restrictions on the use of proceeds and terms of repayment.
In addition, Quebecor World Inc. announced today that Quebecor World Capital Corporation, a wholly owned subsidiary of Quebecor World Inc., will call for redemption on October 29, 2007 (the "Redemption Date") all of its outstanding 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 September 15, 2015 and 8.69% Senior Notes, Series D, due September 15, 2020 (the "Notes") for a redemption price of 100% of the outstanding principal amount of the Notes, plus the accrued and unpaid interest on the Notes to the Redemption Date plus the applicable Make-Whole Amount (as such term is defined in the Note Purchase Agreements relating to the Notes) determined for the Redemption Date with respect to the outstanding principal amount of the Notes. The estimated aggregate redemption price of the Notes is approximately $370 million. Quebecor World Capital Corporation is giving written notice of the redemption to all Noteholders in whose name the Notes are registered.
Quebecor World believes the modified credit facility, combined with other financing initiatives currently underway, should provide the Company with the required liquidity to execute its business plan.
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