MTS Allstream selling $249M worth of shares

WINNIPEG – MTS Allstream has entered into a "bought deal" financing agreement which will see it sell over 8 million common shares for approximately $249 million. A syndicate of underwriters, led by CIBC and Scotiabank, have agreed to purchase and sell to the public 8,855,000 common shares at a purchase price of $28.10 per common share for gross proceeds of $248,825,500. The net proceeds will be approximately $238 million. The company said that it intends to use the net proceeds from the offering to fulfill future pension funding obligations (including prefunding its solvency deficit and other potential future pension liabilities)...