MONTREAL – Bell Canada announced a public offering of $1 billion of medium term debentures that it says it will use to help fund its purchase of CTVglobemedia Inc.
The 4.40% debentures, Series M-22, will be dated March 16, 2011 and will mature on March 16, 2018. Issued at a price of $99.92 per $100 principal amount for a yield to the investor of 4.414% per annum, compounded semi-annually, they will be fully and unconditionally guaranteed by Bell Canada’s parent, BCE Inc.
Moody’s Investors Service assigned a Baa1 rating to the senior unsecured notes issue, the same rating level as the company’s existing senior unsecured indebtedness, and said that the ratings outlook is “stable”.
“We view the transaction as approximately leverage neutral, and one which does not change the credit profile of the issuer”, Moody’s wrote.
