Quebecor Media's $350 million term loan, which was downsized from $460 million, broke in the secondary market at 101 1/4 last week. Bank of America leads the deal, which is priced at LIBOR plus 2%. A $525 million new issue of 7.75% '16 senior notes also broke in the market and traded in the 101-102 range.
A trader said the term loan was downsized, while the size of the notes was increased because of higher demand for the credit in the bond markets. Quebecor Media, a subsidiary of Quebecor Inc., a Canadian media communications company, sold the notes in a 144a private placement.
Moody's Investors Service assigned a B2 senior unsecured rating to the new note issue. The rating agency said in a report that the company has a good position in the Canadian newspaper and cable sectors and enjoys diverse cash flows.