TORONTO – Rogers Communications rolled out a $1.85 billion debt securities offering on Tuesday consisting of $1.45 billion of 5.34% notes due 2021 and $400 million of 6.56% notes due 2041.
The 5.34% senior notes due 2021 are priced at $999.54 per $1,000 principal amount, for an effective yield of 5.346% per annum if held to maturity. They will mature on March 22, 2021. The 6.56% senior notes due 2041 are priced at par for an effective yield of 6.56% per annum if held to maturity. They will mature on March 22, 2041.
Rogers said that the net proceeds from the offering will be approximately $1,840 million, which are intended to be used to fund redemptions of senior notes maturing in 2012, including the intended termination of the associated cross-currency interest rate exchange agreements, repay outstanding advances under its bank credit facility, and for general corporate purposes.
Moody’s assigned the offering a ‘stable’ ratings outlook, noting that with substantially all of the proceeds used to refinance existing debt, “the new issues are neutral to Rogers’ consolidated credit profile and the new notes are rated at the same Baa2 level as the balance of the company’s senior unsecured debt.”
