MONTREAL – Cogeco Cable Inc. announced today it will be issuing 4.5 million subordinate voting shares, raising $173.2 million on a bought deal basis at a price of $38.50 per share.
The company, with cable, Internet, and telephone services in Quebec, Ontario, and Portugal, says net proceeds from the offering will be used to repay debt and for general corporate purposes.
Under the offering, the shares will be offered for sale to the public in each of the provinces and territories of Canada. The underwriting syndicate includes Scotia Capital Inc. acting as bookrunner and is being co-led by GMP Securities L.P., BMO Nesbitt Burns Inc., CIBC World Markets Inc., and includes Desjardins Securities Inc. and National Bank Financial Inc.
The company has granted the underwriters an over-allotment option exercisable in whole or in part for a period of 30 days following closing of the offering, to purchase up to an additional 500,000 shares on the same terms as set out above solely to cover over-allotments, if any, and for market stabilization purposes.
If this option is fully exercised, the total gross proceeds of the offering will be $192.5 million. The offering is scheduled to close on or about February 2, 2007, subject to customary conditions.
