Toronto-based operator Rogers Communications has priced a US dollar bond and a Canadian dollar bond as it looks to raise US$1.87bn to finance its recent acquisition of 700 MHz spectrum.
Rogers is offering US$1.12bn in Canadian dollar-denominated notes,…
Toronto-based operator Rogers Communications has priced a US dollar bond and a Canadian dollar bond as it looks to raise US$1.87bn to finance its recent acquisition of 700 MHz spectrum.
Rogers is offering US$1.12bn in Canadian dollar-denominated notes, which Citigroup, BofA Merrill Lynch and RBC Capital Markets are underwriting.
The bond comprises US$225m of floating rate senior notes due 2017, US$361m of 2.80% senior notes due 2019, and US$541m of 4.00% senior notes due 2024.
Meanwhile the US dollar component is made up of a single US$750m tranche of 5% senior notes due 2044, which priced at 99.23. Citigroup, BofA Merrill Lynch and RBC Capital Markets were bookrunners again, and JP Morgan joined them on this offering.
Rogers spent C$3.29bn (US$2.97bn) on the 20 year 700 MHz licences in last month’s auction where it acquired more paired blocks than its rivals, but spent almost three times as much on its haul as the next highest bidder.
It bought 22 paired blocks across the country’s main markets whereas Telus and Bell bought three quarters of that amount, but only spent C$1.14bn and C$565m respectively.
Rogers plans to use the proceeds from the bonds, as well as cash on hand and other debt funding, to purchase the spectrum from the government. Rogers and the other winning bidders have to submit 20% of their total payment tomorrow, and the remaining 80% of their total final payment is due 2 April.
