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Montreal (Québec), September 21, 2009 – Transcontinental
Inc. announced today that it will be issuing 4,000,000 cumulative
rate reset preferred shares, series D (the “Series
D Preferred Shares”) for aggregate gross proceeds of
$100 million on a bought deal basis to a syndicate of underwriters
led by Scotia Capital Inc. and CIBC World Markets Inc., acting
as joint book-runners. The Series D Preferred Shares will
pay cumulative dividends of $1.6875 per share per annum,
yielding 6.75% per annum, payable quarterly, for the initial
five year period ending October 15, 2014. The dividend rate
will be reset on October 15, 2014 and every five years thereafter
at a rate equal to the 5-year Government of Canada bond yield
plus 4.16%. The Series D Preferred Shares will be redeemable
by Transcontinental on October 15, 2014, and every five years
thereafter in accordance with their terms.
Holders of the Series D Preferred Shares will have the right,
at their option, to convert their shares into cumulative
floating rate preferred shares series E. (the “Series
E Preferred Shares”) subject to certain conditions,
on October 15, 2014 and on October 15 every five years thereafter.
Holders of the Series E Preferred Shares will be entitled
to receive cumulative quarterly floating dividends at a rate
equal to the three-month Government of Canada Treasury Bill
yield plus 4.16%.
Transcontinental has also granted the underwriters the option
to purchase up to 600,000 additional Series D Preferred Shares
to cover over-allotments, exercisable in whole or in part
anytime up to 30 days following closing of the offering.
Net proceeds resulting from the sale of the Series D Preferred
Shares of Transcontinental shall be used by the Corporation
to repay indebtedness, and for general corporate purposes.
The Series D Preferred Shares will be offered for sale to
the public in each of the provinces Canada pursuant to a
prospectus supplement and the base shelf prospectus filed
on September 17, 2009. The prospectus supplement will be
filed with Canadian securities regulatory authorities in
all provinces of Canada.
The offering is scheduled to close on or about October 2,
2009, subject to certain conditions, including conditions
set forth in the underwriting agreement.
About Transcontinental
Transcontinental provides printing, publishing and marketing
services that deliver exceptional value to its clients along
with a unique, integrated platform for them to reach and
retain their target audiences. Transcontinental is the largest
printer in Canada and the sixth largest in North America.
It is also Canada’s leading publisher of consumer magazines
and French-language educational resources as well as the
country’s second-largest community newspaper publisher.
Transcontinental’s digital platform delivers unique
content through more than 120 websites. 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 corporation 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) employs approximately
13,000 employees in Canada, the United States and Mexico,
and reported revenues of $2.4 billion in 2008. For more information
about the Corporation, please visit www.transcontinental.com.
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For information:
Media
Maxim Labrie
Media Relations
Transcontinental Inc.
Telephone: 514 954-4176
maxim.labrie@transcontinental.ca
Financial Community
Jennifer F. McCaughey
Director, Investor Relations
Transcontinental Inc.
Telephone: 514 954 2821
jennifer.mccaughey@transcontinental.ca
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