Press release details

Cogeco Transitions its Term Revolving Facilities into the First Syndicated Sustainability-Linked Loans in Canada within the Telecommunications and Media Sectors

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.  

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.