S&P places Bell Aliant on positive watch

Standard & Poor’s said it placed the long-term ratings on Bell Aliant Inc. and its related entities, including its BBB long-term corporate credit rating, on CreditWatch with positive implications.

The watch follows news that BCE will take Bell Aliant private through a tender offer for the remaining 55.9% of the shares it does not own, S&P said.

The company will fund the C$3.95 billion purchase with about C$2.95 billion of BCE common shares and about C$1 billion of debt, the agency said.

BCE also is seeking to exchange Bell Aliant’s preferred shares for new preferred shares of BCE with similar financial terms, S&P added.

Any Bell Aliant debt that remains after the acquisition will be rated on a consolidated basis with BCE – the ratings on which are unchanged following this news, the agency said.

The transaction is subject to support from more than 50% of Bell Aliant’s minority shareholders, S&P said, as well as approval from the Competition Bureau of Canada.

The deal is expected to close in the fourth quarter of 2014 following approvals, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.