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Montreal (Québec), October 2, 2009 – Transcontinental
Inc. announced today that it has closed its previously announced
bought deal public offering of 4,000,000 cumulative 5-year
rate reset first preferred shares, series D (the “Series
D Preferred Shares”) for gross proceeds of $100 million,
purchased by a syndicate of underwriters led by Scotia Capital
Inc. and CIBC World Markets Inc., acting as joint book-runners.
Transcontinental has also granted the underwriters an option
to purchase up to 600,000 additional Series D Preferred Shares
to cover over-allotments, exercisable in whole or in part
at any time up to 30 days following closing of the offering.
If the over-allotment option is exercised in full, the aggregate
gross proceeds to Transcontinental will be $115 million.
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 offered under the offering
have not been and will not be registered under the United
States Securities Act of 1933 and state securities laws. Accordingly,
the Series D Preferred Shares may not be offered or sold to
U.S. persons except pursuant to applicable exemptions from
registration. This press release does not constitute an offer
to sell or the solicitation of an offer to buy nor will there
be any sale of the securities in any state in which such offer,
solicitation or sale would be unlawful.
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 in Mexico, and sixth-largest
in North America. It is also the country’s leading publisher
of consumer magazines and French-language educational resources,
the 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, TCL.PR.D) has approximately
13,000 employees in Canada, the United States and Mexico,
and reported revenue 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
Sylvain Morissette
Vice-President, Corporate Communications
Transcontinental Inc.
Telephone: 514 954-4007
sylvain.morissette@transcontinental.ca
Financial Community
Jennifer F. McCaughey
Director, Investor Relations
Transcontinental Inc.
Telephone: 514 954 2821
jennifer.mccaughey@transcontinental.ca
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