DTH provider and telecoms operator Bell Canada is in the market with a C$1bn bond offering as part of the reinstatement of its C$3bn Medium Term Notes (MTN) programme.
The new notes, which were issued as unsecured debentures, will mature on 18 June 2019…
DTH provider and telecoms operator Bell Canada is in the market with a C$1bn bond offering as part of the reinstatement of its C$3bn Medium Term Notes (MTN) programme.
The new notes, which were issued as unsecured debentures, will mature on 18 June 2019 and carry a coupon of 3.35%. The notes priced at 99.839 to yield 3.376%, giving them a spread of 185 basis points over the Government of Canada (GoC) curve.
Net proceeds from the offering are intended to be used for general corporate purposes, including the repayment of outstanding commercial paper, and funding a portion of the cost of BCE’s acquisition of Astral Media, which is expected to close in the second half of 2012.
BCE announced back in March 2012 that it had agreed to pay C$3.38bn (US$3.41bn) to purchase Quebecois media firm Astral.
National Bank Financial, RBC Capital Markets and Scotia Capital are joint lead arrangers and bookrunners on the offering, while BofA Merrill Lynch, BMO Nesbitt Burns, CIBC World Markets, Desjardins Securities, TD Securities, Barclays, Citigroup and Casgrain & Company are co-managers in the banking syndicate.
The financing, which is rated BBB+ by Standard & Poor’s and Baa1 by Moody’s, is expected to close on 18 June.
Under the reinstated MTN programme BCE can offer up to C$3bn of MTN Debentures from time to time until September 2013. BCE has entered into a dealer agreement under which the current JLAs and bookrunners have agreed to act as managers and underwriters with respect to future offerings of MTN debentures.
