DBRS Morningstar Assigns Rating of BBB (low) with a Stable Trend to Transcontinental Inc.’s Debt Issuance

DBRS Limited (DBRS Morningstar) assigned a rating of BBB (low) with a Stable trend to Transcontinental Inc.’s (Transcontinental or the Company; rated BBB (low) with a Stable trend by DBRS Morningstar) $200 million 2.667% Series 2 Senior Unsecured Notes due February 3, 2025 (the Notes).

The Notes will be direct senior unsecured obligations of Transcontinental and will rank pari passu with all of Transcontinental's other existing and future senior unsecured indebtedness and senior in right of payment to any future subordinated indebtedness of Transcontinental. The Notes will be solidarily (jointly and severally) guaranteed, on a senior unsecured basis, by the Guarantors as outlined in the trust indenture. The Notes will be issued under the Company’s trust indenture with AST Trust Company (Canada) (now known as TSX Trust Company) (the Trustee) dated July 12, 2021.

The net proceeds of the proposed issuance will be used by Transcontinental to mainly repay existing indebtedness, including term loans, and for other general corporate purposes.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

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

The principal methodologies are Rating Companies in the Industrial Products Industry (January 28, 2022; https://www.dbrsmorningstar.com/research/391382), Rating Companies in the Printing Industry (March 12, 2021; https://www.dbrsmorningstar.com/research/375263), and DBRS Morningstar Criteria: Guarantees and Other Forms of Support (May 31, 2021; https://www.dbrsmorningstar.com/research/379424), which can be found on dbrsmorningstar.com under Methodologies & Criteria. Other applicable methodologies include the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (February 3, 2021; https://www.dbrsmorningstar.com/research/373262).

Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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