MONTREAL – Cogeco Cable announced today that it has completed – pursuant to a private placement – the issue of 7% series A senior secured notes for US$190 million, maturing October 1, 2015, and 7.6% series B senior secured notes for C$55 million maturing October 1, 2018.
Interest on these notes is payable semi-annually in arrears on April 1 and October 1 of each year commencing April 1, 2009. The aggregate gross proceeds from the issue of these notes amount to approximately C$257 million. Net proceeds of approximately C$255 million, after underwriters’ fees and other expenses, will be applied to repay Cogeco Cable’s maturing debt and reduce bank debt.
In addition, Cogeco Cable has completed today a cross-currency swap agreement with financial institutions to fully hedge its financial obligations with respect to the U.S. denominated series A senior secured notes. Taking into consideration the cross-currency swap agreements, the interest rate effectively incurred by Cogeco Cable for the series A senior secured notes is 7.24%.
