Aliant Telecom to repay 11.4% first mortgage bonds, seeks consents for repayment

By Jennifer Chiou

New York, June 8 - Aliant Telecom Inc. announced an offer to repay for cash all of its 11.4% first mortgage series V bond due July 5, 2010.

Aliant said the securities will be redeemed at a price based on the Canada yield price - the yield to maturity of the comparable maturity Government of Canada bond calculated on the business day preceding board approval of the redemption - with accrued interest.

The company said it expects to calculate pricing on June 30.

Aliant added that it will convene a bondholder meeting on July 4 to seek approval of amending the trust indenture to allow the bonds to be repaid by Aliant at any time at the same price provided in the offer to repay.

The company said it will pay a consent fee equal to $2.50 per $1,000 principal amount of bonds to holders who tender their proxies by June 27.

On March 7, Aliant and BCE announced the creation of a new income trust.

Based in Saint John, N.B., Aliant provides communications services.

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