TORONTO – On Canada Day (a day the company is fond of doing big things) Rogers Communications successfully completed the intracompany amalgamation of RCI and its wholly owned subsidiaries Rogers Cable and Rogers Wireless that was announced on May 14, 2007.
The amalgamated entity continues as RCI, and Cable and Wireless are no longer separate corporate entities and have ceased to be reporting issuers, says the company.
The amalgamation does not impact the consolidated results previously reported by RCI. In addition, the operating subsidiaries of Cable and Wireless are not part of and are not impacted by the amalgamation.
As a result of the amalgamation, RCI assumed all of the rights and obligations under all of the outstanding Cable and Wireless public debt indentures and swaps.
"RCI effected this amalgamation principally to simplify its corporate structure, while enabling it to streamline many of the related reporting and compliance obligations," says the press release.
Also, as previously announced, on June 21, 2007, Wireless redeemed all of its US$155 million principal amount of its 9.75% senior secured debentures due 2016 at a redemption price of 128.416% (or US$1,284.16 per US$1,000 principal amount of debentures) plus accrued interest to the date of redemption, reads the release.
As part of the amalgamation process, on June 29, 2007, the $1 billion Cable bank credit facility, the $700 million Wireless bank credit facility and the $600 million bank credit facility of RCI’s wholly owned subsidiary, Rogers Media were cancelled, and RCI entered into a new unsecured $2.4 billion bank credit facility.
Also, as part of the amalgamation process and as previously announced, on June 29, 2007, Cable and Wireless released all security provided by bonds issued under the Cable deed of trust and the Wireless deed of trust for all of the then outstanding Wireless and Cable public debt indentures and swaps. As a result, none of Cable’s and Wireless’ public debt or swaps remain secured by such bonds effective as of June 29, 2007.
And, as a result of these actions, the outstanding public debt, the swaps and the new bank credit facility now reside at RCI on an unsecured basis.
