DBRS Notes Corus Entertainment Prices $500 million 7.25% 2017 Notes Issue

DBRS notes that Corus Entertainment Inc. (Corus or the Company) has priced its senior unsecured notes (the Notes) issuance. DBRS today assigned a rating of BBB (low) with a Stable trend to the Notes.

The $500 million 7.25% 2017 Notes were issued at par. The issuance is expected to close on or around February 11, 2010.

This notes issuance was initiated by Corus by way of a supplement to its $500 million final short form base shelf prospectus dated January 29, 2010.

The Notes are direct senior unsecured obligations of Corus and rank pari passu with all existing and future senior unsecured indebtedness of the Company. The Notes are also guaranteed on a senior unsecured basis by the Company’s restricted operating subsidiaries.

DBRS expects Corus to use the proceeds from this notes issue and its new credit facility to retire its existing credit facility. This notes financing and the renewed credit facility are expected to help to smooth out Corus’s debt maturities and enhance its liquidity profile.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating Media and Entertainment, which can be found on our website under Methodologies.

This is a Corporate (Telecom/Media/Technology) rating.