Rogers offers US$10B of bonds to finance Shaw takeover
BNN Bloomberg
Rogers is tapping the U.S. and Canadian high-grade bond markets to help finance its US$16 billion takeover of Shaw
Rogers Communications Inc. is tapping the U.S. and Canadian high-grade bond markets to help finance its US$16 billion takeover of Shaw Communications Inc.
The Canadian telecom company sold US$7.05 billion worth of dollar-denominated bonds in five parts, according to a person familiar with the matter. The longest portion of the offering, a 30-year security, will yield 245 basis points above Treasuries, after initial talks around 265 basis points above, said the person, who asked not to be identified as the details are private.
Rogers also sold debt in loonies on Monday. The company plans to wrap a $4.25 billion (US$3.3 billion) bond sale in four parts.
Proceeds from the offering are intended to pay a portion of the cash consideration for the Shaw deal and finance other costs associated with it, the person said. Rogers held investor calls for the bond sale on Friday.
Rogers agreed to buy rival Shaw last year in what will be one of the largest deals ever in the Canadian telecom industry if completed. The deal remains under regulatory scrutiny for antitrust violations. The Canadian government said last week that it won’t allow Rogers to buy all of the wireless spectrum owned by Shaw if the two companies close the deal.
Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Royal Bank of Canada managed the U.S. sale, the person said.
