Telecoms group Bell Canada is offering C$1.25bn (US$1.12bn) worth of medium term notes in two series under its existing MTN programme.
About C$1bn of the net proceeds will be used by its parent Bell Canada Enterprises (BCE) for the privatisation of the…
Telecoms group Bell Canada is offering C$1.25bn (US$1.12bn) worth of medium term notes in two series under its existing MTN programme.
About C$1bn of the net proceeds will be used by its parent Bell Canada Enterprises (BCE) for the privatisation of the Bell Aliant subsidiary, the telco said in a statement.
The financing is split between C$750m worth of 3.15% notes, which were priced at 99.602 and will mature in September 2021, and a C$500m 4.75% bond, which was priced at 99.099 and is due in September 2044.
The lead bookrunners were CIBC, TD and National Bank, a spokesperson said. The other syndicate members included BMO, RBC, Scotia, Desjardins, Bank of America Merrill Lynch, Barclays, Citibank and Casgrain.
The notes, which will be fully and unconditionally guaranteed by BCE, are being offered throughout Canada. It expects to close the offering on 29 September.
In late July, BCE agreed to buy out the public shareholders in fibre operator Bell Aliant for around C$3.95bn (US$3.68bn).
BCE already owns 44% of Bell Aliant and has exercised managing control of the business.
As a result of the privatisation, which is due to complete by 31 October, the fibre operator will cease operating as a publicly-traded company and will be integrated into BCE’s national operations.
