Rogers Wireless five-tranches talked in $2.35 billion notes offering

By Paul A. Harris

St. Louis, Nov. 18 - Rogers Wireless Inc.'s $2.350 billion equivalent five-tranche offering of notes emerged with price talk Thursday, according to a syndicate source.

The Rule 144A offering, which is expected to price on Friday, contains four tranches of senior secured notes (Ba3/BB/BB+). Price talk on those tranches is 7¼% to 7½% on $400 million to $500 million eight-year fixed-rate bullets, 7½% to 7¾% on $500 million to $600 million of 10-year fixed-rate bullets, 37.5 basis points behind the eight-year bond for the C$400 million to $500 million seven-year fixed-rate bullets and Libor plus 325 basis points area on $500 million to $600 million six-year floating rate notes, non-callable for two years.

Rogers Wireless is also offering $425 million of eight-year fixed-rate senior subordinated notes (B2/B/BB-), which are talked 75 basis points behind the dollar-denominated eight-year senior secured note and are non-callable for four years.

Final tranche sizes are yet to be determined.

Citigroup is the bookrunner for the Rule 144A offering. JP Morgan, Scotia Capital, Harris Nesbitt, TD Securities and RBC Capital Markets are co-managers.

Proceeds will be used to make a C$1.750 billion distribution as a return of capital to Rogers Wireless, to repay C$850 million of inter-company subordinated debt owing to Rogers Communications Inc. incurred in connection with Rogers Wireless' acquisition of Microcell Telecommunications Inc. and repay a portion of the outstanding advances under Rogers Wireless' amended credit facility, also incurred in connection with the Microcell acquisition.

The prospective issuer, a subsidiary of Toronto-based Rogers Wireless Communications Inc., operates Canada's largest integrated wireless voice and data network.

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