Canadian satellite broadcaster Shaw Communications has launched a C$400m senior unsecured bond offering. The notes priced just below par to yield 6.961%.
The financing is a re-opening of the 6.75% 30-year notes, maturing 2039, that were originally…
Canadian satellite broadcaster Shaw Communications has launched a C$400m senior unsecured bond offering. The notes priced just below par to yield 6.961%.
The financing is a re-opening of the 6.75% 30-year notes, maturing 2039, that were originally issued in November 2009 raising C$650m. An additional C$400m of these notes was then sold in December 2010.
Proceeds are to be used to refinance existing debt under Shaw’s credit facility as well as for working capital and general corporate purposes. More specifically, Shaw is seeking to repay the C$60m of debt incurred to repurchase US$51.6m of 13.5% senior notes due 2015 and the remaining outstanding amount of the US$1bn debt incurred to complete the acquisition of the broadcast assets of Canwest Global Communications in September 2010. The bulk of that financing was repaid via the C$500m of 5.5% senior notes, due 2020, and C$400m of 6.75% senior notes, due 2039, that Shaw secured in December 2010.
Despite the financing, Shaw retains an investment grade rating (Baa3 by Moody’s and BBB- by Standard & Poor’s) with a leverage multiple of less than 2.5 times total debt to adjusted EBITDA.
TD Securities was the lead on the offering with CIBC, RBC
Capital and Scotia Capital arrangers.