MONTREAL, Dec. 17, 2021 /CNW Telbec/ - Cogeco Inc.
(TSX: CGO) and Cogeco Communications Inc. (TSX: CCA) are pleased to
announce the amendment and extension of their Term Revolving
Facilities. Cogeco Communications Inc.'s $750 million Term Revolving Facility is extended
to January 24, 2027 and Cogeco Inc.'s
$100 million Term Revolving Facility
to February 3, 2027. As part of the
amendments, Cogeco and Cogeco Communications have transitioned the
revolving facilities into a Sustainability-linked loan ("SLL")
structure, underscoring Cogeco's strong leadership and dedication
to sustainability and the organization's Environmental, Social and
Governance (ESG) goals.
These facilities represent the first syndicated
Sustainability-linked loans in Canada within the telecommunications and media
sectors.
The SLL facilities incorporate ESG-linked incentive pricing
terms which reduce or increase the cost of funding, depending on
the annual performance against the following of Cogeco's
targets:
- GHG annual emissions reduction targets which are aligned
with the Science-Based Target Initiative (SBTi) approved Scope 1
and 2 GHG reduction target of 65% by 2030.
- Digital inclusion initiative to provide 75,000 homes in
unserved and underserved areas of Canada with access to high-speed Internet
service over a three-year period. Annual targets have been defined
over that period.
Additionally, Cogeco will dedicate any savings achieved from the
SLL towards internal sustainability initiatives.
"The SLL structure reflects goals which are at the core
of our ESG mission, and represents material topics that matter to
our stakeholders. Cogeco is determined to demonstrate strong and
inspiring leadership and take concrete steps to address climate
change and support the closing of the digital divide," said
Patrice Ouimet, Senior
Vice-President and Chief Financial Officer.
CIBC acted as the Sole Sustainability Structuring Agent,
Joint-Bookrunner, Co-Lead Arranger, and Administrative Agent for
the Term Revolving Facility of Cogeco Communications Inc., along
with BMO Capital Markets and National Bank Financial Markets as the
Co-Sustainability Coordinators, Joint-Bookrunners and Co-Lead
Arrangers. CIBC acted as the Sole Sustainability Structuring Agent,
Joint-Bookrunner, and Co-Lead Arranger for the Term Revolving
Facility of Cogeco Inc, along with Scotiabank as the
Joint-Bookrunner, Co-Lead Arranger and Administrative
Agent.
ABOUT COGECO
Cogeco Inc. is a holding corporation
which operates in the communications and media sectors. Its Cogeco
Communications Inc. subsidiary provides residential and business
customers with Internet, video and telephony services through its
two-way broadband fibre networks, operating in Québec and
Ontario, Canada, under the Cogeco
Connexion name, and in the United
States under the Atlantic Broadband brand in 12 states. Its
Cogeco Media subsidiary owns and operates 23 radio stations with
complementary radio formats and extensive coverage serving a wide
range of audiences mainly across the province of Québec, as well as
Cogeco News, a news agency. Cogeco's subordinate voting shares are
listed on the Toronto Stock Exchange (TSX: CGO). The subordinate
voting shares of Cogeco Communications Inc. are also listed on the
Toronto Stock Exchange (TSX: CCA).
SOURCE Cogeco Inc.