Bell Canada has launched a public offering of C$750m (US$547.9m) debentures under its medium-term note (MTN) programme, partly to refinance existing debt.
Bell Canada (TSX:BCE) has launched a public offering of C$750m (US$547.9m) debentures under its medium-term note (MTN) programme, partly to refinance existing debt.
The Montréal-based telecoms and DTH giant said in a statement that the 3.55% debentures, Series M-41, will be dated 29 February 2016, mature on 2 March 2026 and be issued at C$99.624 per C$100 principal amount. They will be fully guaranteed by Bell’s parent company BCE.
Bell said the proceeds will be used for general corporate purposes, including the future repayment of all of its C$150m (US$109.6m) floating rate debentures, series M-38, due 22 April 2016 and C$500m (US$365.2m) 5.41% debentures, series M-32, due 26 September 2016.
The debentures are being offered nationwide via a syndicate of agents and will be issued pursuant to a short form base shelf prospectus dated 14 November 2014. Closing is expected to take place on 29 February.
Last December, Bell closed an C$862m (US$629.8m) offering of 15.11 million common shares led by BMO Capital Markets and RBC Capital Markets, together with CIBC World Markets National Bank Financial and TD Securities. The proceeds of this offering were also to be used to pay down debt and for general corporate purposes.
The previous month, in November, Bell Canada agreed to pay C$211m (US$154.2m) for Corus Entertainment’s pay-TV business in the country’s west. The deal is expected to enable it to expand The Movie Network into a national pay-TV service and become the sole operator of HBO Canada across all platforms.
Bell reported revenue of C$21.5bn (US$15.7bn) for FY 2015, up 2.2% year-on year. Adjusted EBITDA was up 3% to C$8.6bn (US$6.3bn). The company’s net debt leverage ratio at the end of the year stood at 2.53x and it is targeting a ratio of 1.75x-2.25x. During a presentation on the results, the company described its debt maturity schedule as “manageable”. C$1.35bn (US$986.5m) of its long-term debt matures in 2016.