Postmedia Network Canada Corp.

Canaccord Genuity Acts as Exclusive Financial Advisor to Postmedia Network Canada Corp. on its ~C$16M Acquisition of Brunswick News Inc. and ~C$257M Maturity Extension on its First and Second Lien Notes

Canaccord Genuity is pleased to announce that on February 17, 2022, Postmedia Network Canada Corp. (“Postmedia”) entered into a definitive agreement with J. D. Irving, Limited (“JDI”) to purchase all of the issued and outstanding shares of Brunswick News Inc. (“BNI”). The proposed acquisition includes BNI’s daily and weekly newspapers, digital properties and parcel delivery business in exchange for consideration of C$7.5M in cash and C$8.6M in variable voting shares of Postmedia at an implied price of C$2.10 per variable voting share (subject to working capital adjustment).

Concurrent with the acquisition, Postmedia announced it has entered into definitive agreements, subject to customary closing conditions, for an extension of the maturity of its first lien notes and second lien notes totaling C$257M (collectively, the “Notes”) by approximately three and a half years to February 17, 2027 and August 17, 2027, respectively. The notes will be on substantially similar terms to the existing terms including interest rates. The maturity of the asset-based revolving credit facility (“ABL Facility”) was also extended by three years to October 1, 2025. In connection with the extension, Postmedia will repay approximately C$15M of principal amount of the first lien notes and holders of the first lien notes will receive 794,630 variable voting shares of Postmedia.

Postmedia Network Canada Corp. (TSX:PNC.A, PNC.B) is the holding company that owns Postmedia Network Inc., a Canadian newsmedia company representing more than 120 brands across multiple print, online, and mobile platforms. Award-winning journalists and innovative product development teams bring engaging content to millions of people every week whenever and wherever they want it. This exceptional content, reach and scope offers advertisers and marketers compelling solutions to effectively reach target audiences.

Canaccord Genuity acted as exclusive financial advisor to Postmedia on the acquisition of BNI and the maturity extension on its first and second lien notes. The Canaccord Genuity team had senior support from David Kassie and included Mike Lauzon, Kevin Romano, Jeffrey Solomon, and Daniel Lin from Investment Banking.