Satellite broadcaster and telecoms operator Bell Canada Enterprises is close to securing a C$2.5bn loan facility in order to support its acquisition of Canadian content provider Astral Media.
SatelliteFinance understands that the financing is split…
Satellite broadcaster and telecoms operator Bell Canada Enterprises is close to securing a C$2.5bn loan facility in order to support its acquisition of Canadian content provider Astral Media.
SatelliteFinance understands that the financing is split between a C$2bn 3-year senior unsecured term loan and a C$500m 3-year revolving credit facility. Bank of Montreal and CIBC are mandated lead arrangers on the facility, which is currently in syndication.
Proceeds are predominantly to be used to fund the C$3.38bn purchase of Quebecois media firm Astral as well as to refinance existing debt. BCE agreed to buy Astral back in March 2012, with the acquisition expected to close in the second half of 2012.
The deal is part of BCE’s strategy over the past couple of years to aggressively bulk up its content offering through a series of acquisitions. In September 2010, the company re-acquired its broadcasting arm which included CTV, one of Canada’s largest television networks.
A year later, Bell partnered with rival Rogers Communications to buy a majority holding in Maple Leaf Sports and Entertainment, owner of the NHL ice hockey team the Toronto Maple Leafs and NBA basketball team Toronto Raptors as well as other local sports teams. The acquisition, which was worth around C1.32bn, enabled the two companies to have exclusive sports content.
The loan also comes hot on the heels of BCE completing its C$1bn bond offering. That financing, which was part of BCE’s C$3bn MTN programme, was used for general corporate purposes, including refinancing existing bonds as well as to partially fund the Astral acquisition.
National Bank Financial, RBC Capital Markets and Scotia Capital were JLAs and lead books on the offering.
