Postmedia Completes Acquisition of Sun Media English Language Newspapers and Digital Properties

by: Press Release | Postmedia

Postmedia Network Canada Corp. (“Postmedia” or the “Company”) today announced the closing of the Company’s previously announced agreement to acquire Sun Media Corporation’s (“Sun Media”) English language newspapers and specialty publications, as well as digital properties, from Quebecor Media Inc. (the “Sun Media Acquisition”).

“Today we welcome more than 2,500 new employees and more than 170 new brands, along with loyal audiences and business partners, to the Postmedia family,” said Paul Godfrey, President and CEO. “With the completion of this transaction Postmedia becomes one of Canada’s largest newsmedia companies with even more compelling, made-in-Canada offerings for marketers. For our readers and audiences, we will continue to deliver the content they value most from their favourite Postmedia and Sun Media brands – across all of our platforms.”

In connection with the closing of the Sun Media Acquisition, the Company has issued 240,972,226 variable voting shares in exchange for equity subscription receipts issued in connection with the previously announced rights offering (the “Rights Offering”), for aggregate proceeds of $173.5 million. In addition, the Company has issued $140 million of its 8.25% Senior Secured Notes due 2017 (the “Notes”) in exchange for debt subscription receipts issued in October, 2014 in contemplation of the transaction. The net proceeds from the issuance of the Notes and from the Rights Offering, together with the net proceeds related to the sale of the Montreal Gazette production facility and corporate cash, were used by the Company to finance the Sun Media Acquisition.

Note: All dollar amounts are expressed in Canadian dollars.

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