Aliant Telecom gets OK to repay 11.4% first mortgage bonds, sets payout

By Jennifer Chiou

New York, July 5 - Aliant Telecom Inc. announced it received approval 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 C$1,307.69, 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 C$56.22 of accrued interest already included.

The tender yield was 4.469% when pricing was calculated on June 30.

The repayment proposal was announced on June 8.

Aliant convened 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 tendered 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.