Quebecor World, a Montreal-based printing company, has renewed its $1 billion revolver and its $510 million U.S. trade receivables securitization program. "We have a concern with liquidity that we are trying to address with this extension," said Alexandre Couillard, a senior analyst of corporate finance at Quebecor.
The credit line was established in 1999 and has been extended on an annual basis. The multi-currency facility is led by The Royal Bank of Canada and is supported by the same 15 banks that supported the initial loan. The line matures in November 2007. The securitization program has the option to extend it for another year beyond 2005.
Quebecor also recently filed suit against R.R. Donnelley & Sons Co. and three former Quebecor employees. Quebecor is seeking an injunction to prohibit Donnelley and the former employees from using or disclosing trade secrets.