TORONTO – Rogers has closed its concurrent Canadian and U.S. financing transactions of approximately $2.1 billion to help fund its purchases at last month’s 700 MHz wireless spectrum auction.
Using that amount in addition to cash on hand and other available debt, Rogers pledged to invest $3.29 billion to deploy 20 MHz of spectrum, a move its says will result in enhanced network coverage and a better mobile video experience for customers in both rural and urban areas across the country.
Rogers acquired 22 licences – the majority of it in the A and B blocks – in every region of the country, except for the Far North. The company said that the decision to acquire spectrum in the lower band will provide additional benefits to customers, noting that since its existing LTE devices already operate in the lower 700MHz band, all Rogers customers with LTE devices will be able to benefit from its enhanced networks as soon as the new spectrum is deployed, which will begin this year.
“We went after and won this spectrum because we know it will pay off for our customers for the next 20 years and likely beyond”, said Rogers CFO said Anthony Staffieri, in the announcement. “Not only did we get the spectrum we wanted for our customers, but we have financed it with $2.1 billion of long term funding for up to 30 years at some of our lowest rates ever, with an average interest rate of just 3.9%.
In addition, we have made this long term investment for our customers while maintaining our Baa1/BBB+/BBB+ senior credit ratings, which have been affirmed by each of Moody's, Standard and Poor's and Fitch, reflecting their confidence in the investment and in Rogers.”
