Mr. Doug Lamb reports
POSTMEDIA ANNOUNCES CLOSING OF $140 MILLION OF DEBT SUBSCRIPTION RECEIPTS
Further to its announcement of the proposed acquisition
of Sun Media Corp.'s English language newspapers, specialty
publications and digital properties on Oct. 6, 2014, Postmedia Network Canada Corp. has closed and issued debt subscription receipts resulting in total
gross proceeds to the company of $140-million. The subscription receipts
will bear interest at 8.25 per cent per year and are exchangeable for an equal
amount of the company's 8.25-per-cent senior secured notes due 2017 upon closing of the Sun Media acquisition without further
consideration, subject to certain conditions.
Postmedia also announced that it has completed the consent solicitation
process with the holders of its existing notes to approve, amongst other
things, amendments to the existing note indenture required to facilitate
the incremental financing of the additional notes. The company received
consents representing approximately 97 per cent of the outstanding notes.
We seek Safe Harbor.
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