Quebecor announces redemption of 4.0% convertible debentures due 2024

Quebecor Inc. (TSX: QBR.A, QBR.B) has announced today its issuance of a redemption notice to holders of its 4.0% convertible unsecured subordinated debentures due June 26, 2024 (the “Debentures”). The redemption will take place on June 25, 2024, with the total outstanding principal amount of the Debentures, as of May 10, 2024, standing at $150,000,000.

Under the terms of the Debentures, Quebecor has opted to exercise its Share Redemption Payment Right concerning the entire outstanding principal amount. Accordingly, Quebecor will distribute Class B Subordinate Voting Shares (“Class B shares”) to holders on the Redemption Date, in accordance with the conversion terms of the Debentures. Based on the May 10, 2024, closing price, approximately 5.0 million Class B Shares are expected to be issued and delivered to holders on the Redemption Date. Accrued and unpaid interest on the Debentures up to the Redemption Date will be settled in cash.

Pierre Karl Péladeau, President and Chief Executive Officer of Quebecor, stated, “The decision to exercise our Share Redemption Payment Right is consistent with our prudent approach to balance sheet management and our desire to further reduce our debt leverage ratio.”

Since the initiation of Quebecor’s normal course issuer bid (“NCIB”) in 2011, the company has repurchased around 58.2 million Class B shares at an average price of $23.97. These purchases were made through the facilities of the Toronto Stock Exchange or other alternative trading systems, in accordance with applicable requirements.

It’s important to note that this press release does not constitute an offer to sell or the solicitation of an offer to buy or sell securities in any jurisdiction. The securities mentioned have not been and will not be registered under the U.S. Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States without registration or an applicable exemption.

Furthermore, the forward-looking statements in this press release carry inherent risks and uncertainties that could cause Quebecor’s actual results to differ materially from those projected. These risks and uncertainties include various factors such as operational risks, market competition, regulatory changes, and economic conditions. Investors are advised to refer to Quebecor’s public filings for a comprehensive understanding of these risks. Quebecor disclaims any obligation to update or revise any forward-looking statements, except as required by law.

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