Quebecor World to offer convertible debentures as part of debt restructuring and repayment plan

By Evan Weinberger

New York, Nov. 13 - Quebecor World Inc. plans to sell $100 million in senior unsecured convertible debentures as part of a wider offering to pay off the company's existing credit lines.

No bookrunner, timetable or talk was available on the Rule 144A offering.

Quebecor World will also issue $400 million in senior unsecured notes. Quebecor will also be offering C$250 million in equity shares, divided between public equity shares and multiple voting shares and subordinate voting shares for existing shareholders.

The proceeds of the senior notes and debentures will go toward repaying indebtedness under the company's existing credit facilities. Part of the proceeds in the equity shares offering will also go toward repaying existing indebtedness while the rest will be used to repurchase Quebecor's existing series 5 cumulative redeemable first preferred shares. Any remaining funds will be used for general corporate purposes.

Quebecor also intends to amend its existing credit facilities, reducing the outstanding indebtedness to $375 million and extending the terms by one year to 2010.

Quebecor World is a Montreal-based marketing firm.

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