Quebecor World Sells European Operations

Last December, Quebecor World thought it had an agreement with RSDB for a sale price of US$213 million, but that deal was squelched by RSDB shareholders. That transaction would’ve given Quebecor World about a 30 percent stake.

With this agreement, HHBV will assume approximately US$100.9 million of net debt, and a US$32.6 million five-year note bearing interest at 7 percent per year which will remain payable to Quebecor World post-closing. The sale is being made substantially on an “as is, where is” basis and will provide net cash proceeds of US$72.2 million for Quebecor World, less certain customary deductions and expenses permitted by its debtor-in-possession (DIP) credit facility, which are intended to be used by Quebecor World to partially reimburse indebtedness.