Bell Announces Offering of US$2.25 billion aggregate principal amount of Hybrid Notes
Bell Canada has announced a US$2.25 billion offering of Fixed-to-Fixed Rate Junior Subordinated Notes in two series. The first series consists of US$1 billion notes due 2055 with an initial 6.875% interest rate, resetting every five years from September 15, 2030. The second series comprises US$1.25 billion notes due 2055 with an initial 7.000% interest rate, resetting every five years from September 15, 2035.
The notes will be publicly offered in the United States through underwriters, with closing expected on February 18, 2025. BCE Inc. will fully guarantee the notes. Bell plans to use the proceeds to repurchase, redeem, or repay senior indebtedness and for general corporate purposes. The offering is being made in the U.S. under a prospectus supplement to Bell's amended shelf prospectus dated February 6, 2025.
Bell Canada ha annunciato un'offerta di 2,25 miliardi di dollari statunitensi di Note Subordinate Junior a Tasso Fisso in due serie. La prima serie consiste in note da 1 miliardo di dollari con scadenza nel 2055, con un tasso d'interesse iniziale del 6,875%, che si resetterà ogni cinque anni a partire dal 15 settembre 2030. La seconda serie comprende note da 1,25 miliardi di dollari con scadenza nel 2055, con un tasso d'interesse iniziale del 7,000%, che si resetterà ogni cinque anni a partire dal 15 settembre 2035.
Le note saranno offerte pubblicamente negli Stati Uniti tramite intermediari, con chiusura prevista per il 18 febbraio 2025. BCE Inc. garantirà interamente le note. Bell prevede di utilizzare i proventi per riacquistare, rimborsare o estinguere debiti senior e per scopi aziendali generali. L'offerta è effettuata negli Stati Uniti sotto un supplemento di prospetto al prospetto di shelf modificato di Bell datato 6 febbraio 2025.
Bell Canada ha anunciado una oferta de 2,25 mil millones de dólares estadounidenses de Notas Subordinadas Junior a Tasa Fija en dos series. La primera serie consiste en notas de 1 mil millones de dólares con vencimiento en 2055, con una tasa de interés inicial del 6,875%, que se reajustará cada cinco años a partir del 15 de septiembre de 2030. La segunda serie comprende notas de 1,25 mil millones de dólares con vencimiento en 2055, con una tasa de interés inicial del 7,000%, que se reajustará cada cinco años a partir del 15 de septiembre de 2035.
Las notas se ofrecerán públicamente en los Estados Unidos a través de suscriptores, con el cierre previsto para el 18 de febrero de 2025. BCE Inc. garantizará completamente las notas. Bell planea utilizar los ingresos para recomprar, redimir o pagar deudas senior y para fines corporativos generales. La oferta se realiza en EE. UU. bajo un suplemento de prospecto al prospecto de estantería modificado de Bell con fecha del 6 de febrero de 2025.
벨 캐나다는 22억 5천만 달러 규모의 고정-고정 금리 주니어 후순위 채권을 두 가지 시리즈로 발행한다고 발표했습니다. 첫 번째 시리즈는 2055년 만기 10억 달러 규모의 채권으로, 초기 이자율은 6.875%이며, 2030년 9월 15일부터 매 5년마다 재설정됩니다. 두 번째 시리즈는 2055년 만기 12억 5천만 달러 규모의 채권으로, 초기 이자율은 7.000%이며, 2035년 9월 15일부터 매 5년마다 재설정됩니다.
이 채권은 미국에서 인수인을 통해 공개적으로 제공되며, 마감은 2025년 2월 18일로 예상됩니다. BCE Inc.가 이 채권을 전액 보증합니다. 벨은 수익금을 사용하여 선순위 부채를 재매입, 상환 또는 지급하고 일반 기업 목적에 사용할 계획입니다. 이 제안은 2025년 2월 6일자로 수정된 벨의 선반 등록 서류에 따른 미국 내에서 이루어집니다.
Bell Canada a annoncé une offre de 2,25 milliards de dollars américains de titres subordonnés juniors à taux fixe en deux séries. La première série consiste en des titres de 1 milliard de dollars arrivant à échéance en 2055 avec un taux d'intérêt initial de 6,875 %, qui sera réajusté tous les cinq ans à partir du 15 septembre 2030. La deuxième série comprend des titres de 1,25 milliard de dollars arrivant à échéance en 2055 avec un taux d'intérêt initial de 7,000 %, qui sera réajusté tous les cinq ans à partir du 15 septembre 2035.
Les titres seront offerts publiquement aux États-Unis par l'intermédiaire de souscripteurs, avec une clôture prévue pour le 18 février 2025. BCE Inc. garantira entièrement les titres. Bell prévoit d'utiliser les recettes pour racheter, rembourser ou régler des dettes senior et pour des fins d'entreprise générales. L'offre est faite aux États-Unis sous un supplément de prospectus au prospectus modifié de Bell daté du 6 février 2025.
Bell Canada hat ein Angebot über 2,25 Milliarden US-Dollar an nachrangigen festverzinslichen Anleihen in zwei Serien angekündigt. Die erste Serie umfasst Anleihen im Wert von 1 Milliarde US-Dollar mit Fälligkeit im Jahr 2055 und einem anfänglichen Zinssatz von 6,875%, der alle fünf Jahre ab dem 15. September 2030 neu festgelegt wird. Die zweite Serie besteht aus Anleihen im Wert von 1,25 Milliarden US-Dollar mit Fälligkeit im Jahr 2055 und einem anfänglichen Zinssatz von 7,000%, der alle fünf Jahre ab dem 15. September 2035 neu festgelegt wird.
Die Anleihen werden in den Vereinigten Staaten öffentlich über Underwriter angeboten, wobei der Abschluss für den 18. Februar 2025 erwartet wird. BCE Inc. wird die Anleihen vollständig garantieren. Bell plant, die Erlöse zu verwenden, um vorrangige Verbindlichkeiten zurückzukaufen, zu tilgen oder zu begleichen, sowie für allgemeine Unternehmenszwecke. Das Angebot erfolgt in den USA unter einem Prospektnachtrag zu Bells geänderten Shelf-Prospekt vom 6. Februar 2025.
- Substantial capital raise of US$2.25 billion through notes offering
- Guaranteed backing by BCE Inc. enhances notes' security
- Strategic debt management through repayment of senior indebtedness
- High interest rates on notes (6.875% and 7.000%)
- Long-term debt commitment extending to 2055
- Potential interest rate risk with rate resets every five years
Insights
Bell Canada's US$2.25 billion hybrid notes offering represents a strategic move in debt management, particularly noteworthy for its unique structure and timing. The hybrid notes, split between
The interest rate floors of
The 30-year maturity to 2055 and the hybrid structure suggest Bell is optimizing its capital structure while maintaining financial flexibility. The junior subordinated status means these notes sit between senior debt and equity in the capital structure, potentially providing favorable treatment from rating agencies while avoiding immediate equity dilution.
The USD denomination is strategic, tapping into the deeper U.S. market for hybrid securities and potentially achieving better pricing than available in the Canadian market. The use of proceeds to refinance senior debt indicates a liability management exercise that could improve the company's overall cost of capital while extending its debt maturity profile.
This news release contains forward-looking statements. For a description of the related risk factors and assumptions, please see the section entitled "Caution Concerning Forward-Looking Statements" later in this news release.
The US
The Notes are being publicly offered in
Bell intends to use the net proceeds from the Offering to repurchase, redeem or repay, as applicable, its senior indebtedness and for other general corporate purposes.
The Offering is being made in
This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor will there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Copies of the amended and restated short form base shelf prospectus and the prospectus supplement relating to the Offering, which have been filed with the
Caution Concerning Forward-Looking Statements
Certain statements made in this news release are forward-looking statements, including, but not limited to, statements relating to the expected timing and completion of the proposed sale of the Notes, the intended use of the net proceeds of such sale and other statements that are not historical facts. All such forward-looking statements are made pursuant to the "safe harbour" provisions of applicable Canadian securities laws and of
About Bell
Bell is
Through Bell for Better, we are investing to create a better today and a better tomorrow by supporting the social and economic prosperity of our communities. This includes the Bell Let's Talk initiative, which promotes Canadian mental health with national awareness and anti-stigma campaigns like Bell Let's Talk Day and significant Bell funding of community care and access, research and workplace leadership initiatives throughout the country. To learn more, please visit Bell.ca/LetsTalk.
1 Based on total revenue and total combined customer connections. |
Media inquiries:
Ellen Murphy
media@bell.ca
Investor inquiries:
Richard Bengian
richard.bengian@bell.ca
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SOURCE Bell Canada (MTL)
FAQ
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When will BCE's new hybrid notes begin resetting their interest rates?
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