Bell Aliant Inc. announces $200 million offering of cumulative 5-year rate
reset preferred shares
-- Yield of 4.25 per cent for initial five and a half year period
THIS MEDIA RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES
HALIFAX, Jan. 30, 2013 /CNW/ - Bell Aliant Inc. ("Bell Aliant") (TSX: BA)
announced today that its subsidiary Bell Aliant Preferred Equity Inc. (the
"Company") will be issuing 8,000,000 Cumulative 5-Year Rate Reset Preferred
Shares, Series E (the "Series E Preferred Shares"), at a price of $25.00 per
Series E Preferred Share, for aggregate gross proceeds of $200 million on a
bought-deal basis to a syndicate of underwriters led by Scotiabank, TD
Securities Inc., and CIBC.
The underwriters have been granted an over-allotment option to purchase an
additional 1,200,000 Series E Preferred Shares at the offering price. Should
the over-allotment option be fully exercised, the total gross proceeds of the
Series E Preferred Share offering will be $230 million.
The Series E Preferred Shares will pay cumulative dividends of $1.0625 per
share per annum, yielding 4.25 per cent, payable quarterly if, as and when
declared by the Company's board of directors (with the first quarterly
dividend to be paid on June 30, 2013), for the initial five and a half year
period ending September 30, 2018. The dividend rate will be reset on September
30, 2018 and every five years thereafter at a rate equal to the five-year
Government of Canada bond yield plus 2.64 per cent. The Series E Preferred
Shares will be redeemable by the issuer on or after September 30, 2018, in
accordance with their terms.
Holders of the Series E Preferred Shares will have the right, at their option,
to convert their shares into Cumulative Floating Rate Preferred Shares, Series
F, (the "Series F Preferred Shares") subject to certain conditions, on
September 30, 2018 and on September 30 every five years thereafter. Holders of
the Series F Preferred Shares will be entitled to receive cumulative quarterly
floating dividends at a rate equal to the three-month Government of Canada
Treasury Bill yield plus 2.64 per cent, if, as and when declared by the
Company's board of directors.
The Series E Preferred Shares will be offered for sale to the public in each
of the provinces and territories of Canada pursuant to a short form prospectus
to be filed with Canadian securities regulatory authorities in all Canadian
provinces and territories. The offering is scheduled to close on or about
February 14, 2013, subject to certain conditions, including obtaining all
necessary regulatory approvals.
The net proceeds of this offering will be used for repayment of short term
debt and general corporate purposes.
The Series E Preferred Shares have not been, nor will be, registered under the
United States Securities Act of 1933, as amended, or any state securities laws
and may not be offered or sold in the United States or to U.S. persons absent
registration or applicable exemption from the registration requirement of such
Act and applicable state securities laws. This news release shall not
constitute an offer to sell, or the solicitation of an offer to buy, nor shall
there be any sale of these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to qualification under the
securities laws of any such jurisdiction.
This news release contains forward-looking statements concerning the expected
issuance and sale of Preferred Shares and the use of proceeds from the
issuance. These statements are based on the current terms of the offering
agreement and management's expectations at January 30, 2013, and are subject
to change after that date. The statements are subject to important risks and
uncertainties, including customary termination rights and closing conditions.
Therefore, actual results and events may differ materially from these
forward-looking statements, and there can be no assurance that the results or
events predicted will be realized. Except as may be required by Canadian
securities laws, Bell Aliant disclaims any intention and assumes no obligation
to update or revise any forward-looking statement even if new information
becomes available, as a result of future events or for any other reason.
About Bell Aliant
Bell Aliant Inc. (TSX: BA) is one of North America's largest regional
communications providers and the first company in Canada to cover an entire
city with fibre-to-the-home (FTTH) technology with its FibreOP™ services.
Through its operating entities, Bell Aliant serves customers in six Canadian
provinces with innovative information, communication and technology services,
including voice, data, Internet, video and value-added business solutions.
Bell Aliant's employees deliver the highest quality customer service, choice
and convenience. For more information, visit www.bellaliant.ca.
Media Relations Sarah Levy MacLeod (855) 487-5026 email@example.com
Investor Relations Zeda Redden (877) 487-5726 firstname.lastname@example.org
SOURCE: BELL ALIANT INC.
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