Canadian triple play operator Shaw Communications is out with an C$800m (US$720m) senior bond offering split across two tranches.
Shaw priced C$500m of 4.35% notes due 2024 at par. It is also offering C$300m in floating rate notes that will mature in…
Canadian triple play operator Shaw Communications is out with an C$800m (US$720m) senior bond offering split across two tranches.
Shaw priced C$500m of 4.35% notes due 2024 at par. It is also offering C$300m in floating rate notes that will mature in 2016 and carry interest at 69bps over the three month Canadian Dealer Offered Rate (CDOR), which will be paid quarterly.
The Alberta-based telco will use the proceeds for the redemption of its 6.5% C$600m senior notes due 2 June this year. The remainder will be used for working capital.
TD Securities is the sole bookrunner and Shaw expects to close the new offering on 31 January.
CIBC World Markets, RBC Dominion Securities, Scotia Capital, Citigroup and National Bank Financial are acting as agents on the deal.
TD will not be obligated to buy any notes that remain unsold when the offering is over, and therefore the final amount raised by Shaw may be less than C$800m.
Shaw has C$4.5bn in net debt. After the 6.5% notes mature in June, Shaw’s next nearest maturity is C$297m of 6.15% notes due May 2016.
In its most recent quarterly results, the company reported C$1.36bn in consolidated revenues for the previous three months and operating income before amortisation of C$608m.
Shaw offers cable and satellite television, fixed-line telephony and broadband, primarily in British Columbia and Alberta.
