Rogers asks bondholders to change terms as Shaw deal delayed
BNN Bloomberg
Rogers said it’s seeking approval from investors who hold US$9.35 billion of bonds to extend the deadline to complete its acquisition of Shaw Communications
Rogers has to repay the securities at 101 cents on the dollar if the $20 billion (US$15.3 billion) deal isn’t done by the end of the year. The Toronto-based cable and wireless firm wants to extend that to Dec. 31, 2023, to ensure it still has the money in place to close if the transaction drags into next year, according to a statement Monday.
The deal has been delayed by Canada’s antitrust regulator, which has sued to block it, arguing that it will damage competition in a telecommunications sector that’s already dominated by a handful of large companies. Rogers and Shaw have agreed to sell most of Shaw’s wireless business to Quebecor Inc. to address those concerns, but the case appears headed to a hearing at the Competition Tribunal, Canada’s merger court.
The companies have already agreed to change the deadline for the deal to Dec. 31 -- with the option to extend it to Jan. 31, 2023, as long as financing remains in place.
