By Cristal Cody
Tupelo, Miss., Sept. 5 - Bell Canada (Baa2/BBB+/DBRS: BBB) raised C$1 billion in an offering on Thursday of two tranches of medium-term debentures, according to the company.
Bell Canada priced C$400 million of 3.5% series M-28 debentures due Sept. 10, 2018 at 99.941 to yield 3.513%.
The company also sold C$600 million of 4.7% series M-29 debentures due Sept. 11, 2023 at 99.897 to yield 4.713%.
RBC Capital Markets, BofA Merrill Lynch and TD Securities Inc. were the lead managers.
The debentures are fully and unconditionally guaranteed by parent company BCE Inc.
Bell Canada plans to use the proceeds to finance the Aug. 9 redemption of the C$1 billion outstanding of 4.85% series M-20 debentures due June 30, 2014, which was financed on an interim basis by short-term borrowings.
The telecommunications company is based in Montreal.
| Issuer: | Bell Canada
|
| Guarantor: | BCE Inc.
|
| Amount: | C$1 billion
|
| Securities: | Debentures
|
| Bookrunners: | RBC Capital Markets, BofA Merrill Lynch, TD Securities Inc.
|
| Pricing date: | Sept. 5
|
| Settlement date: | Sept. 10
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB+
|
| DBRS: BBB
|
| Distribution: | Canada, Rule 144A, Regulation S
|
|
|
| Series M-28
|
| Amount: | C$400 million
|
| Maturity: | Sept. 10, 2018
|
| Coupon: | 3.5%
|
| Price: | 99.941
|
| Yield: | 3.513%
|
|
|
| Series M-29
|
| Amount: | C$600 million
|
| Maturity: | Sept. 11, 2023
|
| Coupon: | 4.7%
|
| Price: | 99.897
|
| Yield: | 4.713%
|
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