YLO Delisted

Yellow Media Limited has announced:

that its previously announced recapitalization (the “Recapitalization”) has been implemented and is now effective.

Pursuant to the Recapitalization, Yellow Media Inc.’s former securities and all entitlements relating thereto have been exchanged and cancelled for, as applicable, cash, new common shares (TSX: Y) and warrants (TSX: Y.WT) of Yellow Media Limited, the new public parent company resulting from the Recapitalization, and new senior secured notes and new senior subordinated exchangeable debentures (TSX: YPG. DB) of YPG Financing Inc., the entity previously named Yellow Media Inc. and now a wholly-owned subsidiary of Yellow Media Limited.

Accordingly, trading in the company’s securities was halted:

The following issues have been halted by IIROC:

Company: Yellow Media Inc.

TSX Symbol: YLO (all issues)

Reason: Pending Delisting

Halt Time (ET): 8:58 AM ET

S&P then declared YLO in default:

  • •Montreal-based media and marketing solutions provider Yellow Media Inc. (YMI) has implemented its amended debt recapitalization plan following necessary stakeholder and court approvals.
  • •The recapitalization comprises the sub-par exchange of the company’s existing debt with cash, new debt, and shares of a recapitalized YMI (new YMI), and constitutes an event of default as per Standard & Poor’s criteria.
  • •Accordingly, we are lowering our long-term corporate credit rating on YMI
    and its related entities to ‘D’ (default) from ‘CC’.

  • •At the same time, we are lowering our issue-level rating on the company’s medium-term notes to ‘D’ from ‘CC’, and lowering our ratings on the company’s convertible subordinated debentures outstanding to ‘D’ from ‘C’. The recovery ratings on these debt obligations are unchanged.

… and DBRS discontinued the ratings, which they had already declared defaulting:

DBRS has today discontinued Yellow Media Inc.’s (Yellow Media) Issuer Rating, Medium-Term Notes, Exchangeable Subordinated Debentures and Cumulative Preferred Shares ratings, all of which were at D. This action follows the successful implementation of Yellow Media’s recapitalization on December 20, 2012.

The following issues were, but are no longer, tracked by HIMIPref™: YLO.PR.A, YLO.PR.B, YLO.PR.C and YLO.PR.D.

The reorganization was last discussed on PrefBlog when the effective date of December 20 was announced.

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