Quebecor World's New Cash Will Reduce Debts

Edited by the Printingtalk editorial team Mar 8, 2006

Quebecor World has successfully closed its private offering of US$450 million aggregate principal amount of 83/4 per cent Senior Notes, which were sold at par.

Quebecor World has successfully closed its private offering of US$450 million aggregate principal amount of 83/4 per cent Senior Notes, which were sold at par.

The new Senior Notes were issued by Quebecor World Capital ULC, a new indirect wholly-owned subsidiary of Quebecor World, and were unconditionally guaranteed on a senior unsecured basis by Quebecor World Inc and by certain of its other wholly-owned subsidiaries, namely Quebecor World (USA) Inc and Quebecor World Capital LLC.

The net proceeds from the sale of the Senior Notes amount to approximately US$442.2 million and will be used to repay in full US$250 million aggregate principal amount of 7.20 per cent Senior Notes, due on March 28, of Quebecor World's wholly-owned subsidiary, Quebecor World Capital Corporation.

The balance will be used for general corporate purposes, including the reduction of other indebtedness, said the company.

Jacques Mallette, executive vice-president and chief financial officer of Quebecor World Inc, said: "We are pleased with the confidence shown in Quebecor World as demonstrated by the high level of interest in this private placement and by the substantial increase in the size of the offering from that originally announced on February 17.

This provides Quebecor World with additional liquidity and financial flexibility going forward." The offering was made on a private placement basis to qualified institutional buyers in the United States in reliance upon Rule 144A under the US Securities Act of 1933, as amended.

The new Senior Notes have not been, and will not be, registered under the US Securities Act of 1933 or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

In Canada, the offering of new Senior Notes was made on a prospectus exempt basis under applicable Canadian securities laws and, accordingly, any re-sale of the Senior Notes in Canada will be made on a basis that is exempt from the prospectus and dealer registration requirements of such securities laws.