Cogeco Cable Completes Private Placement

On October 1, 2008, Cogeco Cable Inc., one of the largest cable system operators in each of Ontario, Québec and Portugal, completed the issue and sale of US$190 million 7.0 per cent Senior Secured Notes, Series A, due October 1, 2015 and $55 million 7.6 per cent Senior Secured Notes, Series B, due October 1, 2018, pursuant to a private placement led by Citigroup Global Markets Inc. and Banc of America Securities LLC.

The proceeds of these transactions were used to refinance the US$150 million 6.83 per cent Series A Senior Secured Notes maturing October 31, 2008, as well as the related cross-currency swaps for a total of approximately $237 million and for general corporate purposes.

In addition, Cogeco Cable Inc. completed on the same day a cross-currency swap agreement with financial institutions to fully hedge its financial obligations with respect to the US denominated Series A Senior Secured Notes. Taking into consideration the cross-currency swap agreements, the interest rate effectively incurred by Cogeco Cable Inc. for the Series A Senior Secured Notes is 7.24 per cent.

In support of the Cogeco Cable Inc. finance team, led by Pierre Gagné, chief financial officer and Alex Tessier, treasurer, the transactions were led in-house by Yves Mayrand, vice president, corporate affairs and Christian Jolivet, chief legal officer.

Stikeman Elliott LLP acted as counsel to Cogeco Cable Inc. on Canadian law matters, with a team that included Jean Lamothe, Sylvia Avedis and Gabrielle Bélanger (banking); André Roy, Maxime Turcotte, Marie-Ève Ferland (securities); and Marc-André Bélanger (tax).

Foley & Lardner LLP acted as special counsel to Cogeco Cable Inc. on US law matters, with a team that included James A. Manzi and Jarvis P. Kellogg.

Chapman and Cutler LLP acted as special counsel to the note purchasers, with a team that included Robert C. Nash, Edward J. Pelican and Justin Garner.