Bell Canada announces IPO of MTN Debentures
Bell Canada has announced the public offering of C$1.5 billion of MTN Debentures in a bid to boost its internet strategy.
"With this transaction, we are pleased to have secured significant debt capital at what is the all-time lowest financing rate ever achieved by Bell Canada on any MTN debenture issuance," said Glen LeBlanc, Chief Financial Officer for BCE Inc. and Bell Canada.
"With these new issuances, Bell Canada's annual pre-tax cost of outstanding public debentures has declined to 4.56% and average term to maturity is approximately 9.4 years, ensuring predictability in debt service costs and insulating against interest rate volatility."
The net proceeds of the offering are to be used to fund parent company BCE Inc's acquisition of data center operator Q9 Networks Inc and for general corporate purposes.
The MTN Debentures are being publicly offered in all provinces of Canada through a syndicate of agents. Closing of the offering of the MTN Debentures is expected to occur on August 12, 2016.
Bell is Canada's largest communications company and the nation's leading investor in communication infrastructure and services since 1880, delivering broadband wireless, TV and Internet, home phone, media and other communications services to Canadian consumers and business customers.