Canada's Bell announces public offering of C$1.5 billion of medium term notes
A woman uses a mobile device while walking past a Bell payphone in Ottawa February 19, 2014. REUTERS/Chris Wattie
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(Reuters) - Bell Canada, Canada's largest telecommunications company, announced on Tuesday a public offering of C$1.5 billion of medium term notes (MTN) debentures in two series.
The net proceeds of the offering are to be used to fund parent company BCE Inc's (NYSE: BCE) acquisition of data center operator Q9 Networks Inc and for general corporate purposes.
The telecom company will use the money to finance its latest spending to shore up its internet business, whether acquiring data centers or laying fiber-optic cables. It compares to ultra-low returns at the bank, and dismal or risky stock returns.
The $850 million 2 percent MTN debentures will mature on October 1, 2021, and will be issued at a price of C$99.804 per $100 principal amount.
The $650 million 2.9 percent MTN debentures, will mature on August 12, 2026, and will be issued at a price of C$99.733 per $100 principal amount.
"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 Bell Canada and BCE Inc, said in a statement.
(Reporting by Anya George Tharakan in Bengaluru; Editing by Sunil Nair)
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