MONTREAL, Feb. 6 /CNW Telbec/ - Transcontinental Inc. today announced it
has completed a private placement offering of $100 million in unsecured
debentures. These debentures were underwritten by the Solidarity Fund QFL, a
development capital fund based in Quebec.
The placement is comprised of two debentures of $50 million each. The
first has a term of five years and bears interest, payable every six months,
at a rate of 8.06%. The second has a term of ten years and bears interest,
payable every six months, at a rate of 6.77% for the first two years. The rate
for the following eight years will be set at the beginning of this period at
the then prevailing market rate. The Solidarity Fund QFL has a call option on
this second debenture on its second anniversary. Other conditions governing
these two debentures are customary and no more restrictive than existing
indebtedness. Proceeds from issuance of these debentures will be used to
finance the capital projects that were announced in recent months.
"This announcement represents a first step in our financing plan for 2009
which fits very well with our strategy of diversification in sources of funds
and spreading out of maturities," said Benoit Huard, Vice-President and Chief
Financial Officer, Transcontinental Inc. "It signals the confidence investors
have in our company, our strategy and our prospects. With our strong balance
sheet and cash flow generating ability, our disciplined approach to financial
management, our balanced portfolio of businesses, and our investment grade
credit rating, we remain very confident that we will fulfill our 2009
financial needs in the near term."
"This transaction is perfectly suited to the Fund's strategy of putting
its capital to work patiently and flexibly, and to its long-term vision for
Transcontinental, one of Quebec's flagship corporations, with the aim of
supporting its growth," said Gaétan Morin, Senior Vice-President, Investments,
Solidarity Fund QFL. "We salute the dynamic approach and vision of the
Transcontinental team, with whom we are very proud to be associated."
About the Solidarity Fund QFL
With net assets of $6.2 billion as at November 30, 2008, the Solidarity
Fund QFL is a development capital company that through its RRSP channels the
savings of Quebecers into investments in all sectors of the economy to help
create and maintain jobs and to further Quebec's economic growth. The Fund is
a partner, either directly or through its network members, in 1,881 companies.
It currently has nearly 575,000 shareholders and has helped, on its own or
with other financial partners, to create, maintain and protect over 126,000
jobs. For more information, visit www.fondsftq.com.
Transcontinental provides printing, publishing and marketing services
that deliver exceptional value to its clients and provide a unique, integrated
platform for them to reach and retain their target audiences. Transcontinental
is the largest printer in Canada and sixth-largest in North America. It is
also the country's leading publisher of consumer magazines and French-language
educational resources, its second-largest community newspaper publisher, and
its digital platform delivers unique content through more than 120 Web sites.
Its Marketing Communications Sector provides advertising services and
marketing products using new communications platforms supported by database
analytics, premedia, email marketing, and custom communications.
Transcontinental is a growing company with a culture of continuous improvement
and financial discipline, whose values, including respect, innovation and
integrity, are central to its operation. Transcontinental (TSX: TCL.A, TCL.B)
operates in Canada, the United States and Mexico, and reported revenues of
C$2.4 billion in 2008. For more information about the Corporation, please
For further information:
For further information: Media: Nessa Prendergast, Director, Media
Relations, Transcontinental Inc., (514) 954-2809,
firstname.lastname@example.org; www.transcontinental.com; Financial
Community: Jennifer F. McCaughey, Director, Investor Relations,
Transcontinental Inc., (514) 954-2821, email@example.com;
Josée Lagacé, Media Relations, Fonds de solidarité FTQ, (514) 850-4835,