Bell Canada, Bell Aliant get approval to swap out seven note series

By Toni Weeks

San Luis Obispo, Calif., Nov. 14 – Bell Canada and Bell Aliant Regional Communications, LP announced that more than 99% of votes at a Nov. 14 noteholders’ meeting approved the exchange of seven series of Bell Aliant Inc. notes for Bell Canada debentures.

According to a company notice, a quorum was obtained at the meetings, and holders voted as a single class to give their approval of the exchange. As a result, Bell Aliant said it was able to cancel the separate meetings that had been scheduled for holders of each series.

The new Bell Canada debentures will have the same financial terms as those being exchanged, including the coupon, maturity and redemption price.

The note exchange transaction, which is expected to be implemented by the end of this month, is part of Bell’s strategy to “simplify its capital structure and enhance administrative efficiencies by concentrating public debt into a single issuer,” the notice stated.

The seven series of notes are the company’s

• 5.41% medium-term notes, series 2, due Sept. 26, 2016;

• 5.52% medium-term notes, series 4, due Feb. 26, 2019;

• 6.17% medium-term notes, series 5, due Feb. 26, 2037;

• 4.37% medium-term notes, series 7, due Sept. 13, 2017;

• 4.88% medium-term notes, series 8, due April 26, 2018;

• 3.54% medium-term notes, series 9, due June 12, 2020; and

• Floating-rate medium-term notes, series 10, due April 22, 2016.

BMO Capital Markets and RBC Capital Markets were the solicitation agents. D.F. King Canada (800 294-5107 or 201 806-7301 outside of North America, or by email at inquiries@dfking.com) was the information agent.

Bell Aliant is a Halifax, N.S.-based telephone and internet provider for Canadian provinces.

© 2015 Prospect News.
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