{"id":1485,"date":"2007-11-20T18:53:47","date_gmt":"2007-11-20T22:53:47","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=1485"},"modified":"2007-11-20T18:53:47","modified_gmt":"2007-11-20T22:53:47","slug":"iqwprc-probably-wont-be-redeemed-for-cash-credit-review-negative","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=1485","title":{"rendered":"IQW.PR.C Probably Won't be Redeemed for Cash; Credit Review Negative"},"content":{"rendered":"

Quebecor has announced<\/a>:<\/p>\n

that it was withdrawing its refinancing plan involving an offer of approximately Cdn$250 million of its equity shares, an offer on a private placement basis of an aggregate of $500 million of new debt securities and amendments to the Company’s secured credit facilities.\u00a0 The Company has decided to withdraw the refinancing plan due to adverse current financial market conditions.<\/p><\/blockquote>\n

The previously noted<\/a> potential redemption of IQW.PR.C, which was conditional on successful financing, will presumably not take place.<\/p>\n

DBRS<\/a> has announced it has:<\/p>\n

placed the Long-Term and Preferred Share ratings of Quebecor World Inc. (Quebecor World or the Company) Under Review with Negative Implications.<\/p>\n

This action follows an announcement by the Company that it has withdrawn the aggregate $750 million refinancing plan that was announced on November 13, 2007. The Company\u2019s inability to implement its refinancing plan raises additional concerns with Quebecor World\u2019s liquidity position and near-term financial flexibility. DBRS believes Quebecor World\u2019s liquidity issues remain significant and could increase in severity should the Company fail to refinance all or portions of its existing credit facilities in the first half of 2008.<\/p><\/blockquote>\n

At Pfd-5, there’s not much further IQW.PR.C \/ IQW.PR.D can go! They were last downgraded October 5<\/a>.<\/p>\n

Update, 2007-11-23<\/b>: Moody’s has put Quebecor World<\/a>:<\/p>\n

on review for possible downgrade and downgraded the company’s speculative grade liquidity rating to SGL-4 (indicating poor liquidity).
\n…<\/b>
\nWith the refinancing transaction having been cancelled, the company’s financing arrangements require prompt attention in order to assure ongoing orderly operations, and Moody’s considers near term default risk and, therefore, QWI’s long term debt ratings, to be inextricably linked to the company’s ability to normalize its financing arrangements (refer to Moody’s credit opinion for further commentary). Moody’s intends to review the company’s financing\/liquidity plans in short order, with any resulting rating action being based on likely effectiveness and prospects for timely execution. With QWI appearing to be on the verge of generating modest positive cash flow as the cash drain related to its extensive retooling exercise nears completion, presuming that the company’s financing\/liquidity plans are viable, Moody’s would affirm the existing B3 corporate family rating (CFR) and Caa1 instrument ratings. Should this not be the case, downwards ratings actions are likely.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Quebecor has announced: that it was withdrawing its refinancing plan involving an offer of approximately Cdn$250 million of its equity shares, an offer on a private placement basis of an aggregate of $500 million of …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-1485","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1485","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1485"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1485\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1485"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}