/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR DISSEMINATION IN THE U.S./
MONTRÉAL, Feb. 22,
2024 /CNW/ - Cogeco Communications Inc. (TSX:
CCA) ("Cogeco Communications" or the "Corporation") announced today
that it has priced an offering of $275
million aggregate principal amount of 6.125% senior
unsecured notes due February 27, 2029
(the "Notes").
The Notes are being offered through an agency syndicate
consisting of BMO Nesbitt Burns Inc. and CIBC World Markets Inc.,
as lead agents and joint bookrunners, National Bank Financial Inc.,
as co-lead manager, and Desjardins Securities Inc., Merrill Lynch
Canada Inc., RBC Dominion Securities Inc., MUFG Securities
(Canada), Ltd., TD Securities
Inc., Scotia Capital Inc., and Casgrain & Company Limited, as
co-managers.
The offering is expected to close on or about February 27, 2024, 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 unsecured debt
obligations of Cogeco Communications and will rank equally and
pari passu with all other unsecured senior indebtedness of
Cogeco Communications.
The Notes have been assigned a provisional rating of "BB (high)"
from DBRS Limited (Morningstar DBRS) with a "Stable"
trend and Cogeco Communications expects that the Notes
will receive a rating of "BB+" 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, serving 1.6 million residential and
business customers. Through its business units Cogeco Connexion and
Breezeline, Cogeco Communications provides Internet, video and
phone services 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 contained 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. Particularly, statements relating to
the completion of the offering on terms acceptable to Cogeco
Communications and the use of proceeds therefrom are
forward-looking statements. These statements are based on certain
factors and assumptions including expected growth, results of
operations, purchase price allocation, tax rates, weighted average
cost of capital, performance and business prospects and
opportunities, which Cogeco Communications believes are reasonable
as of the current date.
Refer in particular to the "Corporate objectives and
strategies" and "Fiscal 2024 financial guidelines" sections of the
Corporation's 2023 annual Management's Discussion and Analysis
("MD&A") and the "Corporate objectives and strategies" section
of the first quarter of fiscal 2024 MD&A for a discussion of
certain key economic, market and operational assumptions we have
made in preparing forward-looking statements.
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 general market conditions, competitive risks (including changing
competitive ecosystems and disruptive competitive strategies
adopted by our competitors), business risks, regulatory risks,
technology risks (including cybersecurity), financial risks
(including variations in currency and interest rates), our
substantial indebtedness and the restrictions on our businesses
imposed by the terms of our debt, economic conditions (including
inflation pressuring revenue, reduced consumer spending and
increasing costs), talent management risks (including highly
competitive market for limited pool of digitally skilled
employees), human-caused and natural threats to the Corporation's
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.
For more exhaustive information on these risks and
uncertainties, the reader should refer to the "Uncertainties and
main risk factors" section of the Corporation's 2023 annual
MD&A and first quarter of fiscal 2024 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.
These factors are not intended to represent a complete list
of the factors that could affect Cogeco Communications and future
events and results may vary significantly from what management
currently foresees. The reader should not place undue importance on
forward-looking information contained in this press release and the
forward-looking statements contained in this press release
represent Cogeco Communications' expectations as of the date of
this press release (or as of the date they are otherwise stated to
be made) and are subject to change after such date. While
management may elect to do so, the Corporation is under no
obligation (and expressly disclaims any such obligation) and does
not undertake to update or alter this information at any particular
time, whether as a result of new information, future events or
otherwise, except as required by law.
Information:
Patrice Ouimet
Senior Vice President and
Chief Financial Officer
Cogeco Communications Inc.
(514) 764-4600
patrice.ouimet@cogeco.com
Troy Crandall
Head,
Investor Relations
Cogeco Communications Inc.
(514) 764-4600
troy.crandall@cogeco.com
SOURCE Cogeco Communications Inc.