TORONTO – Rogers Communications recent issuance of debt securities to help cover the costs of its spectrum purchases generated more than it had planned.
The company said Wednesday that its previously announced offering of US$1.25 billion aggregate principal amount of 4.35% senior notes due 2049 in the United States, and CDN$1.0 billion aggregate principal amount of 3.25% senior notes due 2029 in Canada generated aggregate net proceeds of CDN$2.7 billion.
Rogers added that the net proceeds from these offerings will be used to fund its $1.73 billion acquisition of the 52 (out of 64) 600 MHz spectrum licenses, with the remainder used for general corporate purposes.
“The success of our $2.7 billion debt offering demonstrates the confidence investors have in Rogers’ strategy, its world class networks, and its spectrum leadership position,” said Rogers’ CFO Anthony Staffieri, in the announcement. “This offering was supported by the largest single-tranche order book on record in Canada, with 10-year and 30-year proceeds at historic low interest rates. In this low cost of capital environment, combined with strong fundamentals for the company and the industry, we view this as an exceptional time to invest in Canada and in our customers, and we are excited with the strong support from investors.”
