New Issue: Videotron prices upsized $455 million 9 1/8% 10-year notes at 98.432 to yield 9 3/8%

By Paul A. Harris

St. Louis, April 7 - Videotron Ltd. priced an upsized $455 million issue of 9 1/8% 10-year senior notes (Ba2/BB-) at 98.432 to yield 9 3/8% in a Monday drive-by deal, according to informed sources.

The yield was printed on top of price talk.

Banc of America Securities, LLC, Citigroup, RBC Capital Markets and Scotia Capital were joint bookrunners for the Rule 144A with registration rights issue, which was upsized from $350 million and which generated about $447.9 million of proceeds.

Proceeds will be used to repay amounts outstanding under the company's senior secured credit facility and for general corporate purposes.

The issuer is a Montreal-based cable operator.

Issuer:	Videotron Ltd.
Face amount:	$455 million (upsized from $350 million)
Proceeds:	$447.9 million (approximately)
Maturity:	April 15, 2018
Security description:	Senior notes
Bookrunners:	Banc of America Securities, LLC, Citigroup, RBC Capital Markets, Scotia Capital
Co-managers:	TD Securities, BMO Nesbitt Burns, National Bank, HSBC
Coupon:	9 1/8%
Price:	98.432
Yield:	9 3/8%
Spread:	584 bps
Call features:	Callable on April 15, 2013 at 104.563, 103.042, 101.521, par on and after April 15, 2016
Equity clawback:	Until April 15, 2011 for 35% at 109.125
Trade date:	April 7
Settlement date:	April 15
Ratings:	Moody's Ba2
	Standard & Poor's: BB-
Distribution:	Rule 144A with registration rights
Price talk:	9 3/8% area

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