|Date Announced:||September 07, 2016|
|Date Closed:||October 05, 2016|
|Client Name:||Canso Investment Counsel Ltd.|
On September 7, 2016, Postmedia Network Canada Corp. (TSX: PNC.A, PNC.B) ("PNCC") announced that the shareholders and noteholders of Postmedia Network Inc. ("PNI") voted in support of the approximately $600 million proposed recapitalization of PNI (the "Transaction"). The Transaction is to be implemented by way of a court-approved plan of arrangement under the Canada Business Corporations Act (the "Plan of Arrangement"). The Ontario Superior Court of Justice (Commercial List) is expected to consider the approval of the Plan of Arrangement at a hearing currently scheduled for September 12, 2016, and it is expected that the Transaction will be implemented on or about September 30, 2016.
The Transaction involves the restructuring of PNI's existing debt obligations, including: (i) significant amendments to the outstanding 8.25% senior secured notes issued by PNI (the "First Lien Notes"); (ii) a paydown of approximately $78 million on the First Lien Notes; (iii) the exchange of the outstanding 12.50% senior secured notes issued by PNI for approximately 98% of the issued and outstanding shares of PNCC on completion of the Transaction; and (iv) the issuance of approximately $110 million of new U.S. dollar denominated second lien secured notes.
In connection with the transaction, Bennett Jones LLP is advising Canso Investment Counsel Ltd., in its capacity as portfolio manager for and on behalf of certain accounts that it manages, which holds approximately 82% of the outstanding First Lien Notes.
The Bennett Jones team includes Mark Rasile, David Rotchtin and Daniel Cipollone (Financial Services/Corporate Finance), S. Richard Orzy and Sean Zweig (Restructuring/Insolvency), Jeffrey Kerbel and Kristopher Hanc (Securities/Corporate Finance), and John van Gent and Douglas Chen (Real Estate).