Rogers Communications Inc. priced the largest corporate bond issuance so far this year as the telecom company refinances debt after it completed the acquisition of a smaller rival.
(Bloomberg) — Rogers Communications Inc. priced the largest corporate bond issuance so far this year as the telecom company refinances debt after it completed the acquisition of a smaller rival.
The Toronto-based wireless company sold C$3 billion ($2.2 billion) of investment-grade rated notes in four parts, according to data compiled by Bloomberg. The longest portion of the offering, a 10-year tranche, was priced at the tight end of a range between 232 basis points and 235 basis points over the Canadian government curve, said the person, who asked not to be identified as the details are private.
Rogers agreed to a C$6 billion bank facility to help fund its C$20 billion deal to acquire Shaw Communications Inc., which was first announced in 2021 and gained approval in March after a legal fight with Canada’s antitrust body.
The transaction garnered investor orders for around three times the size of the bond tranches, according to people familiar with the matter. Demand varied between 48 buyers for the three-year bonds and 77 investors for the 10-year portion.
RBC Capital Markets, Toronto Dominion and Bank of Nova Scotia managed the bond sale, according to Bloomberg-compiled data.
A press officer for Rogers didn’t reply to a request for comment.
–With assistance from Daniel Covello.
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