Bell Canada launches $1bn in MTN Debentures
Bell Canada has announced the public offering of CDN $1 billion of MTN Debentures as part of its medium-term notes (MTN) program.
The CDN $1 billion 3.35% MTN Debentures, Series M-47, which are being issued following a re-opening of an existing series of MTN Debentures, will be dated 25 2020, will mature on 12 March 2025.
It will be issued at a price of CDN $98.501 per $100 principal amount plus accrued and unpaid interest from and including 12 March 2020 to, but excluding, 25 March 2020 in the amount of $0.119315068 per $100 principal amount to yield 3.683%.
Bell intends to use the proceeds of the offering, which is publicly offered in all provinces of Canada through a syndicate of agents, to repay its short-term debt and for ‘general corporate purposes’.
The news comes as much of the world remains in the grips of the Coronavirus outbreak. For its part, Bell Canada says that it is focused on securing its wireless, wireline and media networks to ensure business continuity of its customers.
In addition, the company has implemented alternative working arrangements for its employees and temporarily closed retail locations nationally, with the exception of a small number of street front stores that will stay open for urgent customer support.
Though it is still in the early stages of development and Bell Canada is unable to determine the impact of the COVID-19 situation on its operations or financial results, it says “the impact could be material”.
At the start of the year, BCE Inc named Mirko Bibic as its president and chief executive officer (CEO) as well as his appointment to the boards of BCE and Bell Canada.
Bibic’s appointment follows the retirement of George Cope as president and CEO of BCE and Bell earlier this month. Cope stepped away from his post after almost 12 years as CEO and 14 years total with Bell.