Yellow Media completes $200 million offering of 6.25% convertible unsecured subordinated debentures

On July 8, 2010, Yellow Media Inc. completed a public offering of $200 million aggregate principal amount of 6.25% Convertible Unsecured Subordinated Debentures on a bought deal basis at an offering price of $1,000 per debenture. The debentures have a maturity date of October 1, 2017 and are convertible for trust units of Yellow Pages Income Fund at a conversion price of $8.00 per unit. The offering was made pursuant to a short form prospectus of Yellow Media Inc. dated June 23, 2010 which was filed with the securities regulatory authorities in all provinces and territories of Canada.

Net proceeds resulting from the offering will be used by Yellow Media Inc. to fund the previously announced redemption of Yellow Media Inc.'s outstanding 5.50% Exchangeable Unsecured Subordinated Debentures, and to repay indebtedness under Yellow Media Inc.'s credit facility and commercial paper program. The offering was underwritten by a syndicate of underwriters led by RBC Dominion Securities Inc., TD Securities Inc. and Scotia Capital Inc., acting as joint book-runners, and including CIBC World Markets Inc., BMO Nesbitt Burns Inc, National Bank Financial Inc., Desjardins Securities Inc. and Casgrain & Company Limited.

The underwriters were represented by Fasken Martineau with a team that included Gilles Leclerc, Peter Villani, Catherine Isabelle and Constantinos Ragas (corporate/securities), Mario Racicot (banking) and Gilles Carli (tax).