By Cristal Cody
Prospect News, Feb. 22 - Bell Aliant Inc. announced Tuesday that it sold C$250 million five-year cumulative rate reset preferred shares.
The company sold 10 million series A preferreds at C$25.00 per share. The preferreds (DBRS: Pfd-3) yield 4.85% annually for the initial five-year period ending March 31, 2016. The preferreds are redeemable on or after March 31, 2016.
The deal includes an over-allotment option of an additional 1.5 million preferred shares.
BMO Capital Markets Corp. and Scotia Capital Inc. were the lead managers.
The preferreds are unconditionally guaranteed by parent Bell Aliant Regional Communications Inc.
Proceeds will be used to fund a $200 million contribution to Bell Aliant's pension plans and for general corporate purposes, including repaying debt under Bell Aliant's commercial paper program.
Bell Aliant is one of North America's largest regional communications providers and serves customers in six Canadian provinces.
| Issuer: | Bell Aliant Inc.
|
| Guarantor: | Bell Aliant Regional Communications Inc.
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| Amount: | C$250 million
|
| Greenshoe: | 1.5 million shares
|
| Maturity: | March 31, 2016 (initial redemption date)
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| Securities: | 10 million cumulative rate reset preferred shares
|
| Bookrunners: | BMO Capital Markets Corp., Scotia Capital Inc.
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| Dividend: | 4.85%
|
| Price: | C$25.00 per share
|
| Yield: | 4.85%
|
| Rating: | DBRS: Pfd-3
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| Pricing date: | Feb. 22
|
| Settlement date: | March 9
|
| Distribution: | Canada
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