Bell Canada has agreed to sell up to C$862.84m (US$648.5m) of common stock on a bought-deal basis to a syndicate of underwriters to pay down debt and for general corporate purposes.
Bell Canada (TSX:BCE) has agreed to sell up to C$862.84m (US$648.5m) of common stock on a bought-deal basis to a syndicate of underwriters to pay down debt and for general corporate purposes.
The syndicate is led by BMO Capital Markets and RBC Capital Markets together with CIBC World Markets, National Bank Financial and TD Securities, the Montreal-based telco said in a statement.
The underwriters have agreed to buy 13.14 million common shares for C$57.10 (US$42.92) each, or a total C$750.29m (US$563.91m). They have the option to buy an additional 15% of the offering to cover any over-allotment. If the greenshoe option is fully exercised, the total proceeds will reach C$862.84m.
The transaction is expected to close on or about 11 December 2015, subject to regulatory approvals.
BCE’s total debt stood at C$22.24bn (US$16.72bn) at the end of September 2015, up C$752m (US$565.24m) year-on-year. In its Q3 shareholder reported, the telco attributed the increase to a rise in its notes payable of C$672m, the issuance of C$500m medium-term note debentures and a C$90m increase in its finance lease obligations and other debt.
Last week, Bell Canada agreed to pay C$211m for Corus Entertainment’s pay-TV business in the country’s west. The deal will enable it to expand The Movie Network into a national pay TV service and become the sole operator of HBO Canada across all platforms.
