Document:

EXHIBIT 4.2

 

QUEBECOR MEDIA INC.

 

as Borrower

 

- and —

 

THE FINANCIAL INSTITUTIONS PARTY TO THE AMENDED AND RESTATED CREDIT AGREEMENT AS LENDERS

 

as Lenders

 

- and -

 

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
  - and -

 

TD SECURITIES

 

- and -

 

THE BANK OF NOVA SCOTIA
  as Joint Lead Arrangers and Joint Bookmanagers

 

- and -

 

BANK OF AMERICA, N.A.
  as Administrative Agent

 

- and -

 

THE TORONTO-DOMINION BANK

 

- and -

 

THE BANK OF NOVA SCOTIA
  as Syndication Agent

 

- and -

 

ROYAL BANK OF CANADA

 

- and -

 

FÉDÉRATION DES CAISSES DESJARDINS DU QUÉBEC
  as Documentation Agent

 

 

Revolving Facility — C$300,000,000

 

Facility B-1 Tranche — US$350,000,000

 

FOURTH AMENDMENT TO THE AMENDED AND RESTATED CREDIT AGREEMENT
 DATED JUNE 14, 2013

 

February 15, 2019

 

 

 

 

FOURTH AMENDMENT TO THE AMENDED AND RESTATED CREDIT AGREEMENT DATED JUNE 14, 2013 entered into in Montréal, Province of Quebec, as of February 15, 2019.

 

Fourth Amendment to that certain amended and restated credit agreement dated as of June 14, 2013 between Quebecor Media Inc., as Borrower, Bank of America, N.A., as Administrative Agent, and the several financial institutions from time to time party thereto, as Lenders (as amended, restated, amended and restated, supplemented, replaced or otherwise modified at any time and from time to time, including by way of that certain First Amendment to the Amended and Restated Credit Agreement dated August 1, 2013, that certain Second Amendment to the Amended and Restated Credit Agreement dated June 24, 2016 and that certain Third Amendment to the Amended and Restated Credit Agreement dated May 9, 2017, the “Amended and Restated Credit Agreement”);

 

WHEREAS the parties hereto wish to amend the Amended and Restated Credit Agreement in accordance with the terms and conditions below, without novation; and

 

WHEREAS, in satisfaction of the requirements under the Amended and Restated Credit Agreement, all of the Revolving Lenders have provided their written consent to the Administrative Agent in connection with the amendments provided herein.

 

NOW THEREFORE, for good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties hereto agree as follows:

 

1.                                      Interpretation.

 

1.1                               The preamble forms an integral part hereof as if recited herein at length.

 

1.2                               Capitalized terms used and not otherwise defined herein have the meanings ascribed thereto in the Amended and Restated Credit Agreement.

 

1.3                               This Fourth Amendment to the Amended and Restated Credit Agreement is declared to amend and be supplemental to the Amended and Restated Credit Agreement, to form part thereof and to have the same effect as if it were incorporated therein on the date hereof. Except to the extent that it is amended and supplemented by this Fourth Amendment to the Amended and Restated Credit Agreement, the Amended and Restated Credit Agreement forms part hereof and is included by reference herein with the same effect as if it were recited herein at length. All the other provisions of the Amended and Restated Credit Agreement which are unmodified hereby remain unchanged.

 

1.4                               The expressions “hereto”, “hereof”, “herein”, “hereunder”, “this Amendment”, “this Fourth Amendment” or “this Agreement” refer to this Fourth Amendment to the Amended and Restated Credit Agreement. On and after this date, each reference in the Amended and Restated Credit Agreement to “this Agreement” or “this Amended and Restated Credit Agreement” and each reference to the “Amended and Restated Credit Agreement” in any of the other Credit Documents and any other agreements, documents, certificates and instruments delivered by any Lender, the Borrower, or any other Person in connection herewith or therewith shall mean and be a reference to the Amended and Restated Credit Agreement as amended by this Amendment. Except as specifically amended by this Amendment, the Amended and Restated Credit Agreement shall remain in full force and effect and is hereby ratified and confirmed.

 

1.5                               Unless otherwise expressly provided herein or unless there be something inconsistent therewith, all references to Articles, Sections, subsections, Exhibits or Schedules shall mean and be a reference to such Articles, Sections, subsections, Exhibits or Schedules of the Amended and Restated Credit Agreement.

 

 

1.6                               This Amendment shall constitute a Credit Document.

 

2.                                      Amendments to the Amended and Restated Credit Agreement.

 

2.1                               Section 1.01 (Defined Terms) is hereby amended by deleting the defined term “Non-Consenting Lender” and replacing it with the following:

 

““Non-Consenting Lender” means any Lender that does not approve any consent, waiver or amendment that (a) requires the approval of all Lenders or all affected Lenders in accordance with the terms of Section 12.01 and (b) that has been approved by the Majority Lenders.”.

 

2.2                               Section 1.01 (Defined Terms) is hereby amended by deleting the defined term “Tax Benefit Transaction” and replacing it with the following:

 

““Tax Benefit Transaction” means any Existing Tax Benefit Transaction and, for so long as the Borrower is a direct or indirect subsidiary of Quebecor, any transaction between a QMI Entity and Quebecor or any of its Affiliates, the primary purpose of which is to create tax benefits for any QMI Entity or for Quebecor or any of its Affiliates; provided, however, that (1) the QMI Entity involved in the transaction obtains, or has obtained in respect of a similar previous transaction to the extent same remains applicable as certified by the Vice President, Taxation of the Borrower (or any officer having similar functions), a favorable tax ruling from a competent tax authority or a favorable tax opinion from a nationally recognized Canadian law or accounting firm having a tax practice of national standing as to the tax efficiency of the transaction for such QMI Entity; (2) the Borrower delivers to the Administrative Agent (a) a resolution of the board of directors of the Borrower to the effect the transaction will not prejudice the Lenders and certifying that such transaction has been approved by a majority of the disinterested members of such board of directors and (b) for purposes of Facility B and any determination relating to Facility B only, an opinion as to the fairness to the Borrower of such transaction from a financial point of view issued by an accounting, appraisal or investment banking firm of national standing in the United States of America or Canada; (3) such transaction is set forth in writing; and (4) the Consolidated EBITDA of the Borrower is not reduced after giving pro forma effect to the transaction as if the same had occurred at the beginning of the most recently ended four fiscal quarter period of the Borrower for which internal financial statements are available; provided, however, that if such transaction shall thereafter cease to satisfy the preceding requirements as a Tax Benefit Transaction, it shall thereafter cease to be a Tax Benefit Transaction for purposes of this Agreement and shall be deemed to have been effected as of such date and, if the transaction is not otherwise permitted by this Agreement as of such date, the Borrower will be in Default hereunder if such transaction does not comply with the preceding requirements or is not otherwise unwound within 30 days of that date. Notwithstanding the foregoing, it is agreed and understood that (i) the abovementioned tax ruling or tax opinion, resolution and, as the case may be, fairness opinion, shall not be required for any Tax Benefit Transaction in respect of which the net consideration payable to or by a QMI Entity does not exceed, singly, C$10,000,000 and, in the aggregate C$25,000,000 for the preceding twelve month period and (ii) the abovementioned resolution and, as the case may be, fairness opinion, shall not be required for any Tax Benefit Transaction conducted among QMI Entities.”.

 

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2.3                               Section 1.01 (Defined Terms) is hereby amended by deleting the defined term “Term” and replacing it with the following:

 

““Term” means the period commencing on the Closing Date and terminating with respect to (i) the Revolving Facility, on July 15, 2022 and (ii) Facility B-1 Tranche, on August 17, 2020.”

 

2.4                               Article 1 (Interpretation) is hereby amended by inserting the following new Section 1.15 in the appropriate numerical order:

 

“Section 1.15                 Termination of LIBOR. Notwithstanding anything to the contrary in this Agreement or any other Credit Documents, if the Administrative Agent determines (which determination shall be conclusive absent manifest error), or the Borrower or Majority Lenders under the Revolving Facility notify the Administrative Agent (with, in the case of the Majority Lenders under the Revolving Facility, a copy to the Borrower) that the Borrower or Majority Lenders under the Revolving Facility (as applicable) have determined, that:

 

(i)                                 adequate and reasonable means do not exist for ascertaining LIBOR for any Designated Period, including, without limitation, because the LIBOR Screen Rate (as defined below) is not available or published on a current basis and such circumstances are unlikely to be temporary; or

 

(ii)                              the administrator of the Libor Screen Rate (as defined below) or a Governmental Entity having jurisdiction over the Administrative Agent has made a public statement identifying a specific date after which LIBOR or the LIBOR Screen Rate (as defined below) shall no longer be made available, or used for determining the interest rate of loans (such specific date, the “Scheduled Unavailability Date”), or

 

(iii)                           syndicated loans currently being executed, or that include language similar to that contained in this Section 1.15, are being executed or amended (as applicable) to incorporate or adopt a new benchmark interest rate to replace LIBOR,

 

then, reasonably promptly after such determination by the Administrative Agent or receipt by the Administrative Agent of such notice, as applicable, the Administrative Agent and the Borrower may, jointly, amend this Agreement, for the purposes of the Revolving Facility only, to replace LIBOR with an alternate benchmark rate (including any mathematical or other adjustments to the benchmark (if any) incorporated therein), giving due consideration to any evolving or then existing convention for similar U.S. dollar denominated syndicated credit facilities for such alternative benchmarks (any such proposed rate, a “LIBOR Successor Rate”), together with any proposed LIBOR Successor Rate Conforming Changes (as defined below) and, notwithstanding anything contrary set forth in Section 12.01, any such amendment to this Agreement (as agreed to between the Borrower and the Administrative Agent, the “Proposed Amendments”) shall become effective at 5:00 p.m. on the fifth Business Day after the Administrative Agent shall have posted such Proposed Amendments to all Revolving Lenders unless, prior to such time, Majority Lenders under the Revolving Facility have delivered to the Administrative Agent written notice that such Majority Lenders under the Revolving Facility do not accept such Proposed Amendments. Such LIBOR Successor Rate shall be applied in a manner consistent with market practice; provided that to the extent such market practice is not administratively feasible for the Administrative Agent, such LIBOR 

 

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Successor Rate shall be applied in a manner as otherwise reasonably determined by the Administrative Agent in consultation with the Borrower.

 

If no LIBOR Successor Rate has been determined and the circumstances under clause (i) above exist or the Scheduled Unavailability Date has occurred (as applicable), the Administrative Agent will promptly so notify the Borrower and each Revolving Lender. Thereafter, (x) the obligation of the Revolving Lenders to make, convert or continue any Advance as a Libor Advance shall be suspended (to the extent of the affected Designated Periods), and (y) the LIBOR component shall no longer be utilized in determining the applicable interest rate pursuant to Section 3.10. Upon receipt of such notice, the Borrower may revoke any pending Notice of Borrowing under the Revolving Facility or notice under the Revolving Facility requesting to convert or continue any Advance as a Libor Advance (to the extent of the affected Designated Periods) or, failing that, will be deemed to have chosen to have the interest on the amount of such Advance calculated on the basis of a US Prime Rate Advance.

 

Notwithstanding anything else herein any definition of LIBOR Successor Rate in the Proposed Amendments shall provide that in no event shall such LIBOR Successor Rate be less than zero for purposes of this Agreement.

 

For purposes hereof, “LIBOR Successor Rate Conforming Changes” means, with respect to any proposed LIBOR Successor Rate, any conforming changes to the definition of Applicable Margins, Designated Period, Libor Advance, Libor Basis, Selected Amount, timing and frequency of determining rates and making payments of interest and other administrative matters as may be appropriate, in respect of the Revolving Facility, in the discretion of the Administrative Agent in consultation with the Borrower, to reflect the adoption of such LIBOR Successor Rate and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent determines that adoption of any portion of such market practice is not administratively feasible or that no market practice for the administration of such LIBOR Successor Rate exists, in such other manner of administration as the Administrative Agent determines in consultation with the Borrower is reasonably necessary in connection with the administration of this Agreement).

 

For purposes hereof, “LIBOR Screen Rate” means the offered rate that appears on the applicable screen page referred to in paragraphs (a) and (b) of the definition of “LIBOR” in Section 1.01.

 

2.5                               Schedule 4 (Applicable Margins; per annum) of the Amended and Restated Credit Agreement is hereby amended by deleting the table appearing immediately under “Revolving Facility” and by replacing the same with the following table:

 

[Redacted.]

 

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3.                                      Conditions Precedent.

 

This Amendment shall not be in force or effect until the following conditions precedent are met to the satisfaction of the Administrative Agent and the Revolving Lenders:

 

3.1                               no Default or Event of Default shall have occurred or be continuing or would arise immediately after giving effect to or as a result of this Amendment, and the Administrative Agent shall have received a certificate of an acceptable officer of the Borrower confirming the absence of any such Default or Event of Default;

 

3.2                               all of the representations and warranties contained in the Amended and Restated Credit Agreement and the other Credit Documents shall continue to be true and correct in all material respects on the date hereof (other than representations and warranties made as of a certain date) as if such representations and warranties were made on the date of this Amendment, and the Administrative Agent shall have received a certificate of an acceptable officer of the Borrower confirming the same;

 

3.3                               satisfactory confirmation that no Material Adverse Effect shall have occurred since December 31, 2017, and the Administrative Agent shall have received a certificate of an acceptable officer of the Borrower confirming the same;

 

3.4                               the Administrative Agent and the Revolving Lenders shall have received, in form and substance satisfactory to them and their counsel:

 

3.4.1                     duly executed counterparts of this Amendment;

 

3.4.2                     results of Lien searches from May 9, 2017 to a date reasonably close to the date of this Amendment, of all filings, registrations or recordings of or with respect to all the movable assets of the Borrower and its predecessors in each jurisdiction in which its assets are located or have an office, together with such other documents that the Administrative Agent shall require evidencing, to the entire satisfaction of the Administrative Agent and its counsel, that all such movable assets continue to remain free and clear of all Liens, other than Permitted Liens;

 

3.4.3                     a duly certified copy of the constating documents, by-laws, resolutions and incumbency of the Borrower, certified by an acceptable officer of the Borrower (or to the extent all amendments or additions to such constating documents, by-laws, resolutions and incumbency, if any, have heretofore been delivered to the Administrative Agent, a certificate by an acceptable officer of the Borrower attesting to same);

 

3.4.4                     a certificate of status, compliance, good standing or like certificate issued by the appropriate governmental body of the Borrower’s jurisdiction of incorporation and jurisdiction where it owns any material assets or carries any material business;

 

3.4.5                     the favourable opinions of legal counsel to the Borrower addressed to the Administrative Agent, the Revolving Lenders and their legal counsel covering, inter alia, (i) the corporate status, power and capacity of the Borrower, (ii) the authority and legal right of the Borrower to execute this Amendment and to perform its obligations contained therein or incidental thereto, (iii) the due execution and delivery by the Borrower of the Amendment, (iv) the compliance of the Amendment with the constating documents and by-laws of the Borrower and with the laws of the jurisdiction of organisation of the Borrower and with those 

 

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indicated as  governing each such document; (v) the legality, validity, binding effect and enforceability against the Borrower of the Amendment; (vi) the continued legality, validity, binding effect and enforceability of the Security Documents against the Borrower as continuing to secure the obligations of the Borrower under this Amendment and the other Credit Documents; (vii) the continued opposability and perfection of the security created under the relevant Security Documents; and as to such other matters as the Administrative Agent may reasonably require;

 

3.4.6                     satisfactory evidence that all necessary third party consents and authorisations required in connection with the execution, delivery and performance of this Amendment, if any, have been obtained, and that all debentures, hypothecs, deeds, instruments, forms, financing statements or equivalent documents required under all applicable Laws to preserve the Security, if any, have been executed, delivered and duly registered, recorded, published and/or filed; and

 

3.4.7                     all other documents, declarations, certificates, agreements, notices and information that the Administrative Agent or its counsel may reasonably require; and

 

3.5                               the entire amount of all fees, costs, charges and expenses contemplated herein or in any other Credit Document, to the extent then owing, shall have been paid.

 

4.                                      No Waiver.

 

The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided otherwise, operate as a waiver of any of the rights and powers of or remedies available to the Administrative Agent (in such capacity or in its capacity as collateral agent or fondé de pouvoir, as applicable) or the Lenders under the Amended and Restated Credit Agreement or any of the other Credit Documents nor constitute a waiver of any provision of the Amended and Restated Credit Agreement or such other Credit Documents.

 

5.                                      No Novation.

 

Nothing in this Agreement shall constitute, evidence or result in repayment, readvance, accord or satisfaction, release or novation of all or any part of the Accommodations, the Debt relating to the Accommodations, or any other obligation or liability of the Borrower under, in respect of or in connection with the Accommodations, the Debt relating to the Accommodations, the Amended and Restated Credit Agreement and any other Credit Documents. However, should this Agreement be construed as constituting, evidencing or resulting in repayment, readvance, accord or satisfaction, release or novation of all or any part of the Accommodations, the Debt relating to the Accommodations, or any other obligation or liability of the Borrower under, in respect of or in connection with the Accommodations, the Debt relating to the Accommodations, the Amended and Restated Credit Agreement and any other Credit Documents, the Administrative Agent and the Lenders hereby expressly reserve all of the Security granted in their favour by the Borrower under the Security Documents, the whole in accordance with the provisions of Article 1662 of the Civil Code of Québec.

 

6.                                      Governing Law.

 

This Amendment shall be governed by and interpreted and enforced in accordance with the laws of the Province of Quebec and the federal laws of Canada applicable therein.

 

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7.                                      Successors and Assigns.

 

The provisions of this Amendment shall be binding on and enure to the benefit of the undersigned and their respective successors and permitted assigns.

 

8.                                      Counterparts.

 

This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.

 

9.                                      Patriot Act.

 

The Administrative Agent (for and on behalf of each Lender) hereby notifies the Borrower that pursuant to the requirements of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “PATRIOT Act”), each Lender and the Administrative Agent may be required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender or the Administrative Agent, as applicable, to identify the Borrower in accordance with the PATRIOT Act. This notice is given in accordance with the requirements of the PATRIOT Act and is effective for each Revolving Lender and the Administrative Agent.

 

[Signature pages follow]

 

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IN WITNESS WHEREOF the parties hereto have executed this Fourth Amendment to Amended and Restated Credit Agreement as of the date hereinabove mentioned.

 

	
 
    	
QUEBECOR MEDIA INC., as Borrower
    
	
 
    	
 
    
	
 
    	
Per:
    	
/s/ Hugues Simard
    
	
 
    	
Name:
    	
Hugues Simard
    
	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
Per: 
    	
/s/ Jean-François Parent
    
	
 
    	
Name:
    	
Jean-François Parent
    
	
 
    	
Title:
    	
Vice President and Treasurer
    
	
 
    	
 
    
	
 
    	
BANK OF AMERICA, N.A., as Administrative Agent
    
	
 
    	
 
    
	
 
    	
Per: 
    	
/s/ Henry Pennell
    
	
 
    	
Name:
    	
Henry Pennell
    
	
 
    	
Title:
    	
Vice President
    

 

QMI — Fourth Amendment to Amended and Restated Credit AgreementExhibit 4.12

 

VIDÉOTRON LTÉE, as Borrower

 

-and-

 

RBC DOMINION SECURITIES INC., as Co-Lead Arranger and Joint Bookrunner
  NATIONAL BANK OF CANADA, as Co-Lead Arranger and Joint Bookrunner
  TD SECURITIES, as Co-Lead Arranger and Joint Bookrunner

 

-and-

 

BANK OF AMERICA, N.A., CANADA BRANCH
  BMO CAPITAL MARKETS
  CIBC WORLD MARKETS 
 FÉDÉRATION DES CAISSES DESJARDINS DU QUÉBEC
 THE BANK OF NOVA SCOTIA
  as Co-Arrangers

 

-and-

 

NATIONAL BANK OF CANADA
 THE TORONTO-DOMINION BANK
  as Syndication Agents

 

-and-

 

THE BANK OF NOVA SCOTIA
  as Documentation Agent

 

-and-

 

THE FINANCIAL INSTITUTIONS NAMED
 ON THE SIGNATURE PAGES HERETO
  as Lenders

 

-and-

 

ROYAL BANK OF CANADA
  as Administrative Agent

 

 

THIRD AMENDING AGREEMENT to the Amended and Restated Credit Agreement dated as of June 16, 2015, as amended by a First Amending Agreement dated as of June 24, 2016 and a Second Amending Agreement dated as of January 3, 2018

 

 

BORDEN LADNER GERVAIS LLP

 

 

THIRD AMENDING AGREEMENT to the Amended and Restated Credit Agreement dated as of June 16, 2015, as amended by a First Amending Agreement dated as of June 24, 2016 and a Second Amending Agreement dated as of January 3, 2018, entered into in the City of Montreal, Province of Quebec, as of November 26, 2018,

 

	
AMONG:
    	
 
    	
VIDÉOTRON LTÉE, a company constituted in   accordance with the laws of Quebec, having its registered office at   612 St. Jacques Street, 18th floor, in the City of   Montreal, Province of Quebec (hereinafter called the “Borrower”)
    
	
 
    	
 
    	
 
    
	
AND:
    	
 
    	
THE LENDERS, AS DEFINED IN THE CREDIT AGREEMENT (the   “Lenders”)
    
	
 
    	
 
    	
 
    
	
AND:
    	
 
    	
ROYAL BANK OF CANADA, AS ADMINISTRATIVE AGENT FOR THE LENDERS,   a Canadian bank, having a place of business at 200 Bay Street, 12th floor, South Tower, Royal   Bank Plaza, in the City of Toronto, Province of Ontario (hereinafter called   the “Agent”)
    

 

WHEREAS the parties hereto are parties to a credit agreement originally dated as of November 28, 2000, as amended and restated as of July 20, 2011, as amended by a First Amending Agreement dated as of June 14, 2013, a Second Amending Agreement dated as of January 28, 2015, a Third Amending Agreement creating an Amended and Restated Credit Agreement dated as of June 16, 2015, a First Amending Agreement dated as of June 24, 2016 and a Second Amending Agreement dated as of January 3, 2018 (the “Original Credit Agreement”, and as amended pursuant to this Agreement, the “Credit Agreement”);

 

WHEREAS on May 4, 2017 the full amount of the Credit available under the Unsecured Facility has been reduced to zero, the Commitment of each Unsecured Facility Lender has been converted into an additional Commitment of the same Lender under the Revolving Facility and the Unsecured Facility has been terminated;

 

WHEREAS on October 22, 2018 the Finnvera Term Facility has been terminated;

 

WHEREAS the Borrower has requested certain amendments to the Original Credit Agreement; and

 

WHEREAS the Lenders have unanimously agreed with the Borrower to the amendment contemplated hereby, and as such, the Lenders have complied with the provisions of Section 18.14 and 18.15 of the Original Credit Agreement, as evidenced by the signature of each party hereto on this Agreement;

 

 

NOW THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:

 

I.                                        INTERPRETATION

 

All of the words and expressions which are capitalized herein, including in the preamble hereto, shall have the meanings ascribed to them in the Original Credit Agreement unless otherwise indicated herein.

 

II.                                   AMENDMENTS

 

1.                                      Subsection 1.1.60 of the Original Credit Agreement is hereby deleted and replaced by the following (new text double-underlined and old text stricken off):

 

“1.1.60                                                        “EBITDA” means, with respect to any Person or the Relevant Group during a financial period, earnings before non-controlling interests, earnings from equity-accounted investments, extraordinary items, non-recurring gains or losses on debt extinguishment and asset sales and restructuring, Interest Expense, Taxes (to the extent taken into account for the purposes of determining net income), depreciation and amortization, foreign exchange translation gains or losses not involving the payment of cash, other non-cash financial charges, reconnection costs, subscribers’ subsidies revenues net of related costs, deferred installation revenues net of related costs without taking into account any goodwill adjustments, and amortization of contract assets and contract acquisition costs, calculated in accordance with GAAP; for greater certainty, there shall be excluded from the calculation of EBITDA, to the extent included in such calculation, (a) the amount of any income or expense relating to Back-to-Back Securities, and (b) the EBITDA from any Subsidiary that is not a member of the Relevant Group except to the extent of the cash dividends or other distributions received from such Subsidiary that is not a member of the Relevant Group, net of any reinvestments by the Relevant Group in such Subsidiary.”

 

2.                                      The pricing table under Revolving Facility in Subsection 1.1.101 of the Original Credit Agreement is hereby deleted and replaced by the following:

 

Revolving Facility

 

[Redacted.]

 

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3.                                      Subsection 1.1.108 of the Original Credit Agreement is hereby deleted and replaced by the following (new text double-underlined and old text stricken off):

 

“1.1.108                                                 “New Facility” means one or more credit facilities created from time to time as permitted under Section 2.4 and benefitting from the Security.”

 

4.                                      Subsections 1.1.114.6 and 1.1.114.8 of the Original Credit Agreement are hereby deleted and replaced by the following (new text double-underlined and old text stricken off):

 

“1.1.114.6                                       Charges (i) under any Capital Lease or Synthetic Lease, and (ii) to secure the payment of the purchase price incurred in connection with the acquisition of assets, in each case to be used in carrying on the Core Business, including Charges existing on such assets at the time of the acquisition thereof or at the time of the acquisition by a member of the VL Group of any business entity then owning such assets, whether or not such existing Charges were given to secure the payment of the purchase price of the assets to which they attach, provided that such Charges are limited to the assets purchased and that the amount guaranteed by such Charges does not exceed 100% of the acquisition price of the assets so acquired, and, in the aggregate for (i) and (ii) above, shall not exceed, at the time of incurrence, the greater of (a) 7.5% of Shareholders Equity and (b) $75,000,000, outstanding at any time;

 

1.1.114.8                                             other Charges, not ranking in priority to the Security, incurred in the ordinary course of the Core Business, in an aggregate amount not at any time exceeding, the greater of (a) 7.5% of Shareholders Equity and (b) $75,000,000.”

 

5.                                      Subsection 1.1.145 of the Original Credit Agreement is hereby deleted and replaced by the following:

 

“1.1.145                                                 “Swing Line Commitment” means $55,000,000.”.

 

6.                                      Subsection 1.1.152 of the Original Credit Agreement is hereby amended by deleting the words “means, with respect to the Revolving Facility, the period commencing on the Closing Date and terminating on July 20, 2021” appearing at the beginning of such Subsection and replacing same with “means, with respect to the Revolving Facility, the period commencing on the Closing Date and terminating on July 20, 2023”.

 

7.                                      A new Section 1.6 is added to the Original Credit Agreement to deal with the replacement of LIBOR.  The new Section 1.6 provides as follows:

 

“1.6                                                                         Termination of LIBOR

 

In the event that the LIBOR ceases to be made available or the supervisor for the administrator of the LIBOR or a Governmental Authority having jurisdiction over the Agent has made a public statement identifying a specific date after which the LIBOR shall no longer be used for determining interest rates for loans, then the Borrower and the Agent shall enter into discussions with a view to determining a comparable successor or alternative interbank rate for deposits in US Dollars that is, at such time, broadly accepted

 

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as the prevailing market practice for syndicated leveraged loans of this type; provided that, if such alternative rate of interest shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.  Upon the Borrower and the Agent agreeing on such a rate, the Borrower and the Lenders party hereto shall enter into documentation to amend the provisions of this Agreement to refer to such rate and make all other adjustments incidental thereto, provided that no fee shall then be payable by the Borrower to the Agent and the Lenders in connection with such amendment.  The parties hereto agree that such amendment shall require the consent of the Majority Lenders, notwithstanding anything contrary set forth in Sections 18.14 and 18.15.

 

Until an alternative rate of interest shall be determined in accordance with this Section 1.6, any Notice of Borrowing or notice of conversion requesting to convert or continue any Advance as a Libor Advance shall be ineffective and the Borrower shall be deemed to have chosen to have the interest on the amount of such Advance calculated on the US Base Rate Basis.”

 

8.                                      Subsection 2.1.1 of the Original Credit Agreement is hereby deleted and replaced by the following (new text double-underlined and old text stricken off):

 

“2.1.1                                                               the Revolving Facility, in a maximum amount equal to $1,500,000,000 (subject to increases in accordance with Sections 2.3 and 2.4), including the Swing Line Commitment which forms part of the Revolving Facility;”

 

9.                                      Subsection 2.4.1 of the Original Credit Agreement is hereby deleted and replaced by the following (new text double-underlined and old text stricken off):

 

“2.4.1                                                               The aggregate amount of any such New Commitments and available commitments under any New Facility shall not exceed an amount equal to $500,000,000 minus  the amount of any previous New Commitments and New Facility (in each case, drawn and undrawn) that remain in effect.  The notice shall specify the date (the “Increased Amount Date”) on which the Borrower proposes that the New Commitments or New Facility shall be effective, which shall be a date not less than 15 Business Days after the date on which such notice is delivered to the Agent.  The notice in respect of New Commitments shall provide that the Borrower is first offering the opportunity to provide each New Commitment to the then-existing Revolving Facility Lenders, who may accept same on a pro rata basis or as they may otherwise agree.  Any Revolving Facility Lender approached to provide all or a portion of the New Commitments may elect or decline, in its sole discretion, to provide a New Commitment.”

 

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10.                               Section 13.7 of the Original Credit Agreement is hereby deleted and replaced by the following (new text double-underlined and old text stricken off):

 

“13.7                                                                  Debt and Guarantees

 

Incur or assume Debt, provide Guarantees or render itself liable in any manner whatsoever, directly or indirectly, for any Indebtedness or obligation whatsoever of another Person, except (a) hereunder for the purposes set forth in Section 3.1; (b) that a member of the VL Group may provide financial assistance to another member of the VL Group to the extent that the Borrower complies with the provisions of Section 12.12; (c) unsecured Debt not exceeding $75,000,000 under the Tranche B Finnvera credit agreement entered into among the Borrower, HSBC Bank plc, The Toronto-Dominion Bank and Sumitomo Banking Corporation of Canada dated as of November 13, 2009; (d) in connection with Debt incurred or assumed that is secured by Permitted Charges, and within the limits applicable thereto; (e) in connection with Back-to-Back Transactions and Tax Benefit Transactions including by way of unsecured daylight loans; (f) that the Borrower may incur or assume unsecured Debt by way of Additional Offerings, and that a member of the VL Group may provide unsecured Guarantees in respect of obligations of the Borrower under any such Debt outstanding at any time, to the extent that the Borrower complies with the applicable Leverage Ratio calculated on a pro forma basis and, subject to the provisions of Section 9.3, such member has provided a Guarantee under subsection 9.1.1 or provides such a Guarantee contemporaneously with its Guarantee in relation to the Additional Offering; (g) unsecured Debt by way of Additional Offerings incurred by the Borrower before the Closing Date and listed in Schedule “H” and including, subject to Section 9.3, unsecured Guarantees by members of the VL Group in respect of obligations of the Borrower under such Debt outstanding at any time; (h) the Borrower may borrow Subordinated Debt from Quebecor Media Inc. in a principal amount outstanding from time to time of up to $500,000,000, with interest at a rate not exceeding the greater of (y) the three month bankers’ acceptance rate quoted on Reuter’s Services, page CDOR, as at approximately 10:00 a.m. on such day plus 3.0% per annum, or (z) 7% per annum (together with interest accrued thereon or paid in kind, the “QMI Subordinated Debt”); (i) additional unsecured Debt of up to $250,000,000; (j) in connection with other Subordinated Debt; (k) unsecured daylight loans incurred in connection with Tax Consolidation Transactions, provided that prior to incurring the daylight loan made at the initiation of any Tax Consolidation Transaction in a minimum amount of $75,000,000, the Agent shall have been informed by the Borrower of the incurrence of such daylight loan;  (l) unsecured Debt in respect of daylight loans in the ordinary course of business for cash management purposes, and (m) unsecured Debt facilities, each with a maximum maturity of 2 years, in connection with and to support the issuance of letters of credit required under any Spectrum Auction and Purchase process; provided that, with respect to any of the matters described in paragraphs (c) to (i)  inclusive and (m) above, (A) no Default or Event of Default exists at the time, (B) incurring or assuming such Debt (including by way of providing such Guarantee) will not cause a Default or Event of Default, and (C) on a pro forma basis, the incurrence or assumption of such Debt would not reasonably be expected to cause the Borrower to breach any of its covenants under Section 12.11 hereof.”

 

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11.                               Section 18.15 of the Original Credit Agreement is amended by adding the following at the end of Section 18.15:

 

“If any Lender is a Non-Consenting Lender, then the Borrower may, at its sole cost and expense, upon 10 days’ notice to such Non-Consenting Lender and the Agent, on the condition that at such time, no Default exists and is continuing, require such Non-Consenting Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Article 16), all of its interests, rights and obligations under this Agreement and the other Loan Documents to an Eligible Assignee that shall assume such obligations (which Eligible Assignee may be another Lender, if a Lender accepts such Assignment), provided that:

 

(i)                                     the Borrower pays the Agent the assignment fee specified in Section 16.2.2(f); and

 

(ii)                                  the assigning Non-Consenting Lender receives payment of an amount equal to the outstanding principal of its outstanding Advances, accrued interest thereon, accrued fees and all other amounts payable to it hereunder (including any breakage costs and amounts required to be paid under this Agreement as a result of prepayment of a Lender) from the Assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts).

 

A Non-Consenting Lender shall not be required to make any such assignment or delegation if, prior thereto, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

 

“Non-Consenting Lender” means any Lender that does not approve any consent, waiver or amendment that (a) requires the approval of all Lenders or all Affected Lenders in accordance with the terms of Section 18.15 and (b) that has been approved by the Majority Lenders.”

 

12.                               Schedule “A” to the Original Credit Agreement is amended to increase the aggregate Commitment of all Revolving Facility Lenders under the Revolving Facility from $965,000,000 to $1,500,000,000. The new Schedule “A” is annexed to this Agreement.

 

III.                              REPRESENTATIONS AND WARRANTIES

 

1.                                      The Borrower and Guarantors hereby represent and warrant to the Lenders and the Agent as follows:

 

1.1                               the execution, delivery and performance by the Borrower and the Guarantors of this Agreement have been duly authorized by all necessary corporate and other action and do not and will not require any registration with, consent or approval of, or notice to or action by, any Person (including any Governmental Authority) in order to be effective and enforceable;

 

1.2                               this Agreement constitutes a legal, valid and binding obligation of the Borrower and each Guarantor, enforceable against each such Person in accordance with its

 

6

 

terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity;

 

1.3                               the representations and warranties of the Borrower and each Guarantor set forth in the Credit Agreement shall be true and correct in all respects on and as of the Effective Date (except that where such representations and warranties are qualified by reference to a date, they shall be true and correct as at such date); and

 

1.4                               at the time of and immediately after giving effect to this Agreement, no Default or Event of Default shall have occurred or be continuing.

 

IV.                               CONDITIONS PRECEDENT

 

1.                                      This Agreement shall be effective as of November 26, 2018 (the “Effective Date”), subject to the fulfillment of each of the conditions set out in this Article IV to the entire satisfaction of the Agent and the Lenders:

 

1.1                               certified copies of all of the constating documents, borrowing by-laws and resolutions of the Borrower and of each Guarantor shall have been provided to the Agent;

 

1.2                               this Agreement shall have been executed and delivered;

 

1.3                               the Borrower and each Guarantor which currently has in place a hypothec on all its movable and immovable property (including hypothecs with delivery on securities) pursuant to the Security Documents shall have executed new hypothecs for a principal amount of $2,500,000,000 (plus an additional amount equal to 20% thereof) and such new hypothecs shall have been published wherever required;

 

1.4                               the Borrower shall have delivered to the Agent the favourable legal opinion(s) of the counsel to the Borrower and each Guarantor, addressed to the Lenders, the Agent and its counsel, in form and substance acceptable to the Agent and its counsel, acting reasonably, including with regard to the continuing validity of all relevant Guarantees and Security;

 

1.5                               the Borrower shall have paid to each of the Revolving Facility Lenders an upfront fee in the amount and payable as set forth in the letter sent to the Agent by the Borrower dated November 9, 2018;

 

1.6                               the Borrower shall pay all fees and costs, including all legal fees associated with this Agreement incurred by the Agent as contemplated and restricted by the provisions of Section 12.14 of the Credit Agreement;

 

1.7                               the representations and warranties in Article III of this Agreement shall be true and correct in all material respects as of the date hereof.

 

7

 

V.                                    MISCELLANEOUS

 

1.                                      On the Effective Date, the Original Credit Agreement shall be modified by the foregoing amendment.  The parties hereto agree that the changes to the Original Credit Agreement set out herein and the execution hereof shall not constitute novation and all the Security shall continue to apply to the Original Credit Agreement, as amended hereby, and all other obligations secured thereby.  Without limiting the generality of the foregoing and to the extent necessary, (i) the Lenders and the Agent reserve all of their rights under each of the Security Documents, and (ii) each of the Borrower and the Guarantors obligates itself again in respect of all present and future obligations under, inter alia, the Credit Agreement.

 

2.                                      The Borrower shall cause its counsel to provide to the Agent, no later than January 26, 2019, Quebec land registry sub-search reports covering the immovable hypothecs referred to in Section IV.1.3 above in form and substance agreed with Agent’s counsel.

 

3.                                      All of the provisions of the Original Credit Agreement that are not amended hereby shall remain in full force and effect.

 

4.                                      This Agreement may be signed in any number of counterparts, each of which shall be deemed to constitute an original, but all of the separate counterparts shall constitute one single document.

 

5.                                      This Agreement shall be governed by and construed in accordance with the Laws of the Province of Quebec.

 

6.                                      The parties acknowledge that they have required that the present agreement, as well as all documents, notices and legal proceedings entered into, given or instituted pursuant hereto or relating directly or indirectly hereto be drawn up in English.  Les parties reconnaissent avoir exigé la rédaction en anglais de la présente convention ainsi que de tous documents exécutés, avis donnés et procédures judiciaires intentées, directement ou indirectement, relativement ou à la suite de la présente convention.

 

[Signature pages follow]

 

8

 

IN WITNESS WHEREOF THE PARTIES HERETO HAVE SIGNED THIS AGREEMENT ON THE DATE AND AT THE PLACE FIRST HEREINABOVE MENTIONED.

 

	
VIDÉOTRON LTÉE
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Per:
    	
/s/ Chloé Poirier
    	
 
    
	
 
    	
Chloé Poirier
    	
 
    
	
 
    	
Vice President and Treasurer
    	
 
    

 

Signature Page — Vidéotron Ltée

Third Amending Agreement

 

 

	
ROYAL BANK OF CANADA, as Agent
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Per:
    	
/s/ Rodica Dutka
    	
 
    	
 
    
	
 
    	
Rodica Dutka
    	
 
    	
 
    
	
 
    	
Manager, Agency
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
THE REVOLVING FACILITY LENDERS:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ROYAL BANK OF CANADA
    	
 
    	
NATIONAL BANK OF CANADA
    
	
 
    	
 
    	
 
    
	
Per:
    	
/s/ Pierre Bouffard
    	
 
    	
Per:
    	
/s/ Luc Bernier
    
	
 
    	
Pierre Bouffard
    	
 
    	
 
    	
Luc Bernier
    
	
 
    	
Authorized Signatory
    	
 
    	
 
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Per:
    	
/s/ Jonathan Campbell
    
	
 
    	
 
    	
 
    	
 
    	
Jonathan Campbell
    
	
 
    	
 
    	
 
    	
 
    	
Director
    
	
 
    	
 
    	
 
    
	
BANK OF AMERICA, N.A., Canada Branch
    	
 
    	
THE BANK OF NOVA SCOTIA
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Per:
    	
/s/ Adrian Plummer
    	
 
    	
Per:
    	
/s/ François De Broux
    
	
 
    	
Adrian Plummer
    	
 
    	
 
    	
François De Broux
    
	
 
    	
Associate
    	
 
    	
 
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Per:
    	
/s/ Denis Lapalme
    
	
 
    	
 
    	
 
    	
 
    	
Denis Lapalme
    
	
 
    	
 
    	
 
    	
 
    	
Director
    
	
 
    	
 
    	
 
    
	
THE TORONTO-DOMINION BANK
    	
 
    	
BANK OF MONTREAL
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Per:
    	
/s/ Serge Cloutier
    	
 
    	
Per:
    	
/s/ Deep Gill
    
	
 
    	
Serge Cloutier
    	
 
    	
 
    	
Deep Gill
    
	
 
    	
Premier directeur / Director
    	
 
    	
 
    	
Vice President
    
	
 
    	
 
    	
 
    
	
Per:
    	
/s/ Mel Saklatvala
    	
 
    	
 
    
	
 
    	
Mel Saklatvala
    	
 
    	
 
    
	
 
    	
Premier directeur / Director
    	
 
    	
 
    

 

Signature Page — Vidéotron Ltée

Third Amending Agreement

 

 

	
FÉDÉRATION DES CAISSES DESJARDINS DU QUÉBEC
    	
 
    	
CANADIAN IMPERIAL BANK OF COMMERCE
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Per:
    	
/s/ Catherine McCarthy
    	
 
    	
Per:
    	
/s/ Philippe Boivin
    
	
 
    	
Catherine McCarthy
    	
 
    	
 
    	
Philippe Boivin
    
	
 
    	
Directeur, Financement corporatif Director, Corporate Banking
    	
 
    	
 
    	
Executive Director
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Per:
    	
/s/ André Roy
    	
 
    	
Per:
    	
/s/ Anissa Rabia-Zeribi
    
	
 
    	
André Roy
    	
 
    	
 
    	
Anissa Rabia-Zeribi
    
	
 
    	
Directeur, Financement corporatif Director, Corporate Banking
    	
 
    	
 
    	
Executive Director
    
	
 
    	
 
    	
 
    
	
HSBC BANK CANADA
    	
 
    	
JPMORGAN CHASE BANK, N.A.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Per:
    	
/s/ (signature)
    	
 
    	
Per:
    	
/s/ Jeffrey Coleman
    
	
 
    	
 
    	
 
    	
 
    	
Jeffrey Coleman
    
	
 
    	
 
    	
 
    	
 
    	
Executive Director
    
	
 
    	
 
    	
 
    	
 
    
	
Per:
    	
/s/ (signature)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
MUFG Bank, LTD., CANADA BRANCH
    	
 
    	
CITIBANK, N.A., Canadian Branch
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Per:
    	
/s/ (signature)
    	
 
    	
Per:
    	
/s/ (signature)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
LAURENTIAN BANK OF CANADA
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Per:
    	
/s/ Sylvain Couture
    	
 
    	
 
    
	
 
    	
Sylvain Couture
    	
 
    	
 
    
	
 
    	
Director
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Per:
    	
/s/ Michelle Colivas
    	
 
    	
 
    
	
 
    	
Michelle Colivas
    	
 
    	
 
    
	
 
    	
Senior Portfolio Manager
    	
 
    	
 
    

 

Signature Page — Vidéotron Ltée

Third Amending Agreement

 

 

The undersigned acknowledge having taken cognizance of the provisions of the foregoing Third Amending Agreement and consent thereto, and agree that the Guarantees and Security executed by them (A) remain enforceable against them in accordance with their terms, and (B) continue to guarantee or secure, as applicable, all of the obligations of the Persons specified in such Guarantees and Security Documents in connection with the Credit Agreement as defined above, and as amended hereby:

 

	
9293-6707 QUÉBEC INC.
    	
 
    	
9176-6857 QUÉBEC INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Per:
    	
/s/ Chloé Poirier
    	
 
    	
Per:
    	
/s/ Chloé Poirier
    
	
 
    	
Chloé Poirier
    	
 
    	
 
    	
Chloé Poirier
    
	
 
    	
Vice President and Treasurer
    	
 
    	
 
    	
Vice President and Treasurer
    
	
 
    	
 
    	
 
    
	
VIDÉOTRON INFRASTRUCTURES INC.
    	
 
    	
4DEGRÉS COLOCATION INC. / 4DEGREES COLOCATION INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Per:
    	
/s/ Chloé Poirier
    	
 
    	
Per:
    	
/s/ Chloé Poirier
    
	
 
    	
Chloé Poirier
    	
 
    	
 
    	
Chloé Poirier
    
	
 
    	
Vice President and Treasurer
    	
 
    	
 
    	
Vice President and Treasurer
    
	
 
    	
 
    	
 
    
	
9529454 CANADA INC.
    	
 
    	
8480869 CANADA INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Per:
    	
/s/ Chloé Poirier
    	
 
    	
Per:
    	
/s/ Chloé Poirier
    
	
 
    	
Chloé Poirier
    	
 
    	
 
    	
Chloé Poirier
    
	
 
    	
Vice President and Treasurer
    	
 
    	
 
    	
Vice President and Treasurer
    
	
 
    	
 
    	
 
    
	
FIBRENOIRE INC.
    	
 
    	
SYSTEMES DE FIBRES P2P DU CANADA LTÉE/ CANADIAN P2P FIBRE SYSTEMS   LTD.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Per:
    	
/s/ Chloé Poirier
    	
 
    	
Per:
    	
/s/ Chloé Poirier
    
	
 
    	
Chloé Poirier
    	
 
    	
 
    	
Chloé Poirier
    
	
 
    	
Vice President and Treasurer
    	
 
    	
 
    	
Vice President and Treasurer
    

 

Signature Page — Vidéotron Ltée

Third Amending Agreement

 

 

SCHEDULE “A” - LIST OF LENDERS AND COMMITMENTS

 

[Redacted.]

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