New Issue: Videotron sells upsized $800 million 10-year bullet at par to yield 5%

By Paul A. Harris

Portland, Ore., Feb. 29 - Canada's Videotron Ltd. priced a massively upsized $800 million issue of non-callable 10-year senior notes (Ba1/BB/) at par to yield 5% on Wednesday, according to a syndicate source.

The yield printed at the tight end of the 5% to 5¼% price talk.

Bank of America Merrill Lynch, RBC Capital Markets LLC, Scotia Capital (USA) Inc. and Citigroup Global Markets Inc. were the joint bookrunners for the quick-to-market issue, which was upsized from $500 million.

The Montreal-based cable operator plans to use the proceeds to repurchase 6 7/8% senior notes due 2014 and repay its revolver.

Issuer:	Videotron Ltd.
Amount:	$800 million, increased from $500 million
Maturity:	July 15, 2022
Securities:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., Citigroup Global Markets Inc.
Co-managers:	TD Securities (USA) LLC, National Bank of Canada Financial Inc., BMO Capital Markets Corp., CIBC World Markets Corp., Desjardins Securities Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, Laurentian Bank Securities Inc., Mizuho Securities USA Inc.
Coupon:	5%
Price:	Par
Yield:	5%
Call protection:	Non-callable
Make-whole:	Treasuries plus 50 bps
Trade date:	Feb. 29
Settlement date:	March 14
Ratings:	Moody's: Ba1
	Standard & Poor's: BB
Distribution:	Rule 144A with registration rights and Regulation S
Price talk:	5% to 5¼%
Marketing:	Quick to market

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