DBRS Rates Cogeco’s C$300 Million Senior Secured Debentures Issue BBB (low)/RR1, Stable

DBRS has today assigned a rating of BBB (low)/RR1 to Cogeco Cable Inc.’s (Cogeco or the Company) $300 million Senior Secured Debentures issuance (the Debentures), which was announced on May 22, 2013. The ten-year Debentures will mature on May 26, 2023, carrying a coupon rate of 4.175%.

The net proceeds from the offering will be used to repay a portion of the amount outstanding under Cogeco’s term revolving credit facilities. Cogeco is committing to set aside the resulting increase in the unused amount under these revolving credit facilities to repay the $300 million Senior Secured Debentures, Series “1” set to mature on June 9, 2014. Closing of the offering is expected to occur on or about May 27, 2013.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating the Communications Industry (April 2011), which can be found on our website under Methodologies.