Transcontinental Announces Private Offering of $250M Senior Unsecured Notes

MONTREAL—May 9, 2014—Transcontinental Inc. announced that it has priced an offering of $250 million aggregate principal amount of 3.897 percent senior unsecured notes ("the Notes") due in 2019. The Notes are being offered through an agency syndicate led by CIBC World Markets and Scotia Capital. The Notes will be issued at par for aggregate gross proceeds of $250 million. The offering is expected to close on or about May 13, 2014, subject to customary closing conditions. Transcontinental Inc. intends to use the net proceeds of the offering to repay outstanding indebtedness under its revolving credit facility and for general corporate purposes.

The Notes will bear interest at a fixed annual rate of 3.897 percent, payable in equal semi-annual instalments over the five-year term. The Notes will be direct unsecured obligations of Transcontinental Inc. and will rank pari passu with all other unsecured and unsubordinated indebtedness of Transcontinental Inc. The Notes are being offered in Canada on a private placement basis in reliance upon exemptions from the prospectus requirements under applicable securities legislation.

"The announced debt offering will provide the corporation with continued flexibility to pursue its transformation and execute its growth strategy supported by a strong balance sheet," said Nelson Gentiletti, CFO and development officer of Transcontinental Inc. "Furthermore, the current environment provides the corporation with an opportunity to secure financing at attractive levels."

The Notes have not been and will not be qualified for sale to the public under applicable securities laws in Canada and, accordingly, any offer and sale of the Notes in Canada will be made on a basis which is exempt from the prospectus requirements of such securities laws. The Notes have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered, sold or delivered in the United States of America or its territories or possessions or to U.S. persons except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to an exemption therefrom.

About TC Transcontinental
Largest printer and a leading provider of media and marketing activation solutions in Canada, TC Transcontinental creates products and services that allow businesses to attract, reach and retain their target customers. The corporation specializes in print and digital media, the production of magazines, newspapers, books and custom content, mass and personalized marketing, interactive and mobile applications, door-to-door distribution, and also manufactures a range of flexible packaging products in the United States.

Transcontinental Inc. (TSX:TCL.A)(TSX:TCL.B)(TSX:TCL.PR.D), including TC Transcontinental, TC Media, TC Transcontinental Printing and TC Transcontinental Packaging, has over 9,000 employees in Canada and the United States, and revenues of C$2.1 billion in 2013.

Source: Transcontinental.