RBC Dominion Securities, Credit Suisse First Boston, Citibank and Toronto Dominion Bank are leading a C$1.905 billion bank and bond refinancing package for Quebecor Media, landing roles after a competitive bid. Bank of America and Bank of Montreal, existing lead lenders to Quebecor, reportedly bid for lead roles but fell short. Both are expected to participate in the credit. Marc Girard, v.p., treasurer for Quebecor, declined to comment on any of the banks involved in the bank deal or bond offering.
BMO, B of A, and Toronto Dominion led a C$2.1 billion bank financing in October 2000 for Quebecor Media to acquire Le Groupe Vidéotron Itée. This time around RBC is leading the loan with CSFB, Citi and TD taking agent roles. Salomon Smith Barney and CSFB will also lead an upcoming bond offering, with TD and RBC taking co-manager roles on the bond. Officials at the banks did not comment by press time.
Girard said Quebecor Media is planning to issue US$850 million (C$1.3 billion) of senior notes. The proceeds from the notes offering along with C$605 million from credit facilities will enable Quebecor Media to repay the balance on the C$2.1 billion bank financing, added Girard. The unused balance of C$1.3 billion under the new credit facilities will be cancelled when the US$850 million senior notes offering closes. The balance will be a bridge to asset sale loan, explained a banker.
Essentially the C$1.3 billion is a backstop, said Girard. "The market is not too bad at the moment. It could be better, but we are facing a deadline to refinance, Girard added, explaining the timing of the move. "We don't want to do this four weeks before maturity." The loan includes a $150 million revolver, with the balance being a term loan "A," he said. The margin on the credit, which has been in the market for two weeks, is 3 1/2 % over BA. Syndication is expected to close next week, according to bankers.
Separately, B of A, Bank of Montreal, Toronto Dominion and RBC are close to wrapping up syndication of Vidéotron Itée's $265 million, eight and half year term loan "B" priced at LIBOR plus 2 3/4%. Launched two weeks ago, "the deal is not fully subscribed, but is well on its way," said a banker. Once ratings are finalized, the loan is expected to close this week.