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Montreal, February 6, 2009 – Transcontinental Inc. today
announced it has completed a private placement offering of
$100 million in unsecured debentures. These debentures were
underwritten by the Solidarity Fund QFL, a development capital
fund based in Quebec.
The placement is comprised of two debentures of $50 million
each. The first has a term of five years and bears interest,
payable every six months, at a rate of 8.06%. The second has
a term of ten years and bears interest, payable every six
months, at a rate of 6.77% for the first two years. The rate
for the following eight years will be set at the beginning
of this period at the then prevailing market rate. The Solidarity
Fund QFL has a call option on this second debenture on its
second anniversary. Other conditions governing these two debentures
are customary and no more restrictive than existing indebtedness.
Proceeds from issuance of these debentures will be used to
finance the capital projects that were announced in recent
months.
“This announcement represents a first step in our
financing plan for 2009 which fits very well with our strategy
of diversification in sources of funds and spreading out of
maturities,” said Benoit Huard, Vice-President and Chief
Financial Officer, Transcontinental Inc. “It signals
the confidence investors have in our company, our strategy
and our prospects. With our strong balance sheet and cash
flow generating ability, our disciplined approach to financial
management, our balanced portfolio of businesses, and our
investment grade credit rating, we remain very confident that
we will fulfill our 2009 financial needs in the near term.”
“This transaction is perfectly suited to the Fund’s
strategy of putting its capital to work patiently and flexibly,
and to its long-term vision for Transcontinental, one of Quebec’s
flagship corporations, with the aim of supporting its growth,”
said Gaétan Morin, Senior Vice-President, Investments,
Solidarity Fund QFL. “We salute the dynamic approach
and vision of the Transcontinental team, with whom we are
very proud to be associated.”
About the Solidarity Fund QFL
With net assets of $6.2 billion as at November 30,
2008, the Solidarity Fund QFL is a development capital company
that through its RRSP channels the savings of Quebecers into
investments in all sectors of the economy to help create and
maintain jobs and to further Quebec's economic growth. The
Fund is a partner, either directly or through its network
members, in 1,881 companies. It currently has nearly 575,000
shareholders and has helped, on its own or with other financial
partners, to create, maintain and protect over 126,000 jobs.
For more information, visit www.fondsftq.com.
About Transcontinental
Transcontinental provides printing, publishing and
marketing services that deliver exceptional value to its clients
and provide a unique, integrated platform for them to reach
and retain their target audiences. Transcontinental is the
largest printer in Canada and sixth-largest in North America.
It is also the country’s leading publisher of consumer
magazines and French-language educational resources, its second-largest
community newspaper publisher, and its digital platform delivers
unique content through more than 120 Web sites. Its Marketing
Communications Sector provides advertising services and marketing
products using new communications platforms supported by database
analytics, premedia, email marketing, and custom communications.
Transcontinental is a growing company with a culture of continuous
improvement and financial discipline, whose values, including
respect, innovation and integrity, are central to its operation.
Transcontinental (TSX: TCL.A, TCL.B) operates in Canada, the
United States and Mexico, and reported revenues of C$2.4 billion
in 2008. For more information about the Corporation, please
visit www.transcontinental.com.
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For information:
Media
Nessa Prendergast
Director, Media Relations
Transcontinental Inc.
Telephone: (514) 954 2809
nessa.prendergast@transcontinental.ca
Josée Lagacé
Media Relations
Fonds de solidarité FTQ
Telephone: 514 850-4835
jlagace@fondsftq.com
Financial Community
Jennifer F. McCaughey
Director, Investor Relations
Transcontinental Inc.
Telephone: (514) 954 2821
jennifer.mccaughey@transcontinental.ca
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