Postmedia Signs Agreement with CAAT Pension Plan

January 30, 2019 (TORONTO) – Postmedia Network Canada Corp. today announced that its subsidiary, Postmedia Network Inc., (“Postmedia” or the “Company”) has entered into an agreement with the Colleges of Applied Arts & Technology Pension Plan (the “CAAT Plan”) to merge Postmedia’s six defined benefit pension plans, with assets of over $500 million (the “Postmedia Plans”), with the CAAT Plan effective July 1, 2019 (the “Effective Date”).

The agreement remains subject to approval by the CAAT Plan Board of Trustees and Sponsors’ Committee. The merger is also subject to customary closing conditions including approval from both Postmedia Plan members and the Financial Services Commission of Ontario, or its successor (collectively, “FSCO”), following the submission of a prescribed application requesting consent to the merger.

Assuming all approvals are obtained, Postmedia will become a participating employer under the CAAT Plan on the Effective Date. All members of the Postmedia Plans, as well as members of Postmedia’s defined contribution pension plan will become members of the CAAT Plan on the Effective Date.

“We look forward to joining the CAAT Plan group of employers to provide Postmedia employees with sustainable defined benefit pensions while enabling the Company to manage costs through fixed and predictable pension funding,” said Brian Bidulka, Executive Vice President and Chief Financial Officer, Postmedia.

The CAAT Plan was established in 1967 and became a jointly sponsored pension plan in 1995. The CAAT Plan is registered under the Ontario Pension Benefits Act. It currently has more than 50,000 members from 50 participating employers and has $11 billion under management. The CAAT Plan is 118% funded on a going-concern basis, with a funding reserve of $2.3 billion, based on its latest filed actuarial valuation as of January 1, 2018.

If approved by Postmedia Plan members, all members of the Postmedia Plans and Postmedia’s defined contribution pension plan will begin accruing benefits under the DBplus provisions of the CAAT Plan beginning July 1, 2019. DBplus is a defined benefit pension plan with a fixed contribution rate for members, matched dollar for dollar by employers.

The CAAT Plan will assume defined benefit obligations accrued prior to July 1, 2019 contingent on the approval by FSCO of the transfer of over $500 million of assets of the Postmedia Plans. Once this transfer is completed, cash funding obligations related to the transferred Postmedia Plans deficits will be payable over a term of ten years which is comparable to the Company’s current funding expectations over that time period.

About Postmedia Network Canada Corp.

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 140 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. For more information, visit 12bet slot online12bet slot online www.jolasveinarnir.net.

Forward-Looking Information

This news release may include information that is “forward-looking information” under applicable Canadian securities laws. The Company has tried, where possible, to identify such information and statements by using words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “may,” “will,” “could,” “would,” “should” and similar expressions and derivations thereof in connection with any discussion of future events, trends or prospects or future operating or financial performance. Forward-looking statements in this news release include, but are not limited to, statements with respect to with respect to: the approval by the CAAT Plan Board of Trustees and Sponsors’ Committee of the agreement and implementation, completion and timing of the merger of the Postmedia Plans with the CAAT Plan. By their nature, forward-looking information and statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These risks and uncertainties include, among others: the risk that the merger of the Postmedia Plans with the CAAT Plan may not obtain the required regulatory approvals, approval by Postmedia Plan members or be completed on the terms or on the timeline described in this press release or at all. For a complete list of risk factors related to Postmedia’s business, please refer to the section entitled “Risk Factors” contained in our annual management’s discussion and analysis for the years ended August 31, 2018 and 2017. Although the Company bases such information and statements on assumptions believed to be reasonable when made, they are not guarantees of future performance and actual results of operations, financial condition and liquidity, and developments in the industry in which the Company operates, may differ materially from any such information and statements in this press release. Given these risks and uncertainties, undue reliance should not be placed on any forward-looking information or forward-looking statements, which speak only as of the date of such information or statements. Other than as required by law, the Company does not undertake, and specifically declines, any obligation to update such information or statements or to publicly announce the results of any revisions to any such information or statements.

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For more information:
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Media Contact
Phyllise Gelfand
Vice President, Communications
(416) 442-2936
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Investor Contact
Brian Bidulka
Executive Vice President and Chief Financial Officer
(416) 383-2325
bbidulka@ 12bet slot online www.jolasveinarnir.net

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