By: E&P Staff
Canadian publisher Quebecor Media on Wednesday withdrew a US $750 million bond sale that was intended to finance its acquisition of Osprey Media Income Fund, owner of 20 Ontario dailies.
The scrubbing of the junk bond sale was first reported by Reuters in New York, citing the high-yield research firm KDP Investment Advisors.
Quebecor announced the sale on Monday,
saying proceeds of the bond sale would be used to finance its US $394.7 million Osprey acquisition, to pay off some debt, and to buy the remaining stock of Nurun Inc. that it does not already own. Nurun is a Quebecor subsidiary that specializes in online marketing.
Quebecor, which could not be reached immediately, likely was scared off of the bond offering after Tuesday’s big sell-off of junk bonds following the ratings downgrade of many bonds backed by subprime mortgages.