Canadian DTH and telecoms giant Bell has priced C$1bn worth of 10-year notes to support its acquisition of Quebecois broadcaster Astral Media.
The bond carries a 3.35% coupon and was priced at 99.831, representing a yield of 3.37%.
BofA Merrill Lynch,…
Canadian DTH and telecoms giant Bell has priced C$1bn worth of 10-year notes to support its acquisition of Quebecois broadcaster Astral Media.
The bond carries a 3.35% coupon and was priced at 99.831, representing a yield of 3.37%.
BofA Merrill Lynch, TD Securities and BMO Nesbitt Burns are bookrunners and co-leads for the offering.
Bell will use the proceeds to repay outstanding commercial paper and to fund part of its C$3.38bn Astral Media deal, which is being acquired through its Bell Canada Enterprises (BCE) division.
A C$2.5bn loan facility the company secured last year will also support the transaction.
An original version of the Astral deal was blocked by the Canadian Radio-television and Telecommunications Commission (CRTC) last autumn, but Bell recently submitted remedies in another attempt to get the deal through.
These remedies include the sale of certain TV and radio assets, and the move was given the nod by Canada’s Competition Bureau in early March.
Originally targeting a closing date in 2012, Bell now hopes to receive full regulatory clearance and complete the transaction by 1 June 2013.
The 10-year bond will be guaranteed by BCE and the offering is expected to close on 22 March.
Bell is the largest ISP in Canada, the second largest wireless service provider and the third largest television distributor. Last year Bell generated C$19.9bn revenues, EBITDA of C$7.9bn and reported net debt of C$17.6bn.
