Bell Canada is offering C$1bn (US$957m) in medium term debentures as it looks to finance the redemption of a C$1bn bond.
RBC Dominion Securities, BofA Merrill Lynch and TD Securities served as joint bookrunners and co-leads to the incumbent on the new…
Bell Canada is offering C$1bn (US$957m) in medium term debentures as it looks to finance the redemption of a C$1bn bond.
RBC Dominion Securities, BofA Merrill Lynch and TD Securities served as joint bookrunners and co-leads to the incumbent on the new issuance, which comes in two tranches.
The first is for C$400m (US$383m) of Series M-28 debentures, due 2018, which carry interest at 3.5% and priced at 99.941 to yield 3.513%, 137 basis points over the Canadian government curve.
The second tranche is for C$600m (US$574m) in 4.7% 10-year MTN debentures called Series M-29. This slice priced at 99.897 to yield 4.713% per annum, 188 basis points over the local benchmark.
The proceeds will be used to fund Bell’s redemption of C$1bn notes last month. Those 4.85% Series M-20 debentures were set to mature in summer 2014. Bell financed the buyback in early August on an interim basis through short-term borrowings.
BMO Nesbitt Burns, CIBC World Markets, Desjardins Securities, National Bank Financial, Scotia Capital, Barclays, Citigroup and Casgrain & Company are also participating in the new offering.
Canada’s largest telco expects the transaction to complete on 10 September.
Bell last utilised its medium-term note programme in June to repay debt and partly fund its acquisition of French Canadian broadcaster Astral Media.
