Canadian fixed line operator and DTH provider Shaw Communications has completed a dual tranche C$800m (US$720m) senior bond offering.
Shaw priced C$500m of 4.35% notes due 2024 at par. It is also offering C$300m in floating rate notes that carry…
Canadian fixed line operator and DTH provider Shaw Communications has completed a dual tranche C$800m (US$720m) senior bond offering.
Shaw priced C$500m of 4.35% notes due 2024 at par. It is also offering C$300m in floating rate notes that carry interest at 69bps over the three month Canadian Dealer Offered Rate (CDOR) and mature in 2016.
The Alberta-based company will use the proceeds to fund the redemption of its C$600m 6.5% senior notes due 2 June this year. The remainder will be set aside for working capital purposes.
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.
