New Issue: Videotron $335 million 6 7/8% 11-year notes yield 7%

By Paul A. Harris

St. Louis, Oct. 2 - Videotron Ltee. priced a slightly upsized $335 million of 6 7/8% senior notes due Jan. 15, 2014 (Ba3/B+) at 99.0806 Thursday to yield 7%, according to a syndicate source.

Price talk was for a yield of 7%-7¼%. The deal was originally planned at $325 million.

Banc of America Securities and Citigroup ran the books on the Rule 144A offering. The co-managers were RBC, Scotia Capital, TD Securities, Harris Nesbitt, Credit Suisse First Boston, CIBC World Markets and NBF Securities.

Proceeds from the sale will be used to refinance bank debt.

The issuer is a Montreal-based cable television operator.

Issuer:	Videotron Ltee.
Amount:	$335 million (increased from $325 million)
Maturity:	January 15, 2014
Security description:	Senior notes
Bookrunners:	Banc of America Securities, Citigroup
Co-managers:	RBC, Scotia Capital, TD Securities, Harris Nesbitt, Credit Suisse First Boston, CIBC World Markets, NBF Securities
Coupon:	6 7/8%
Price:	99.0806
Yield:	7%
Call features:	Callable after Jan. 15, 2009 at 103.438, then 102.292, 101.146, declining to par on Jan 15, 2012 and thereafter
Equity clawback:	Until Jan. 15, 2007 for 35% at 106.875
Settlement date:	Oct. 8
Ratings:	Moody's: Ba3
	Standard & Poor's: B+
Price talk:	7%-7¼%

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