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Rogers Communications obtains C$1.75 billion two-year credit facility
New York, Oct. 15 - Rogers Communications Inc. closed on a C$1.75 billion two-year credit facility to fund its purchase of the 34% interest in Rogers Wireless Communications Inc. owned by AT&T Wireless Services Inc.
The new loan, which can be borrowed in U.S. or Canadian dollars, is via Bank of Nova Scotia as administrative agent.
The maturity date is Oct. 12, 2006.
Interest is set using a grid based on Rogers Wireless Inc.'s debt to operating cash flow. For ratios above 5.5-to-1 the margin is 325 basis points over Libor or the Bankers Acceptance rate, for 4.5-to-1 and higher but below 5.5-to-1 the margin is 275 basis points, for 3.5-to-1 and higher but below 4.5-to-1 the margin is 225 basis points, for 3-to-1 and higher but less than 3.5-to-1 the margin is 175 basis points and for less than 3-to-1 the margin is 150 basis points.
The rates step up by 50 basis points on April 8, 2005, a further 25 basis points on July 8, 2005 and a further 50 basis points on April 8, 2006.
There is a 50 basis point standby fee on the unused portion of the facility.
The loan closed on Oct. 13.
Rogers is a Toronto-based telecommunications, cable and broadcasting company.
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