Rogers Communications Inc. Announces Pricing of Private Offering of US$750 million of Fixed-to-Fixed Rate Subordinated Notes

Rhea-AI Summary

Rogers Communications Inc. (RCI) has announced the pricing of a private offering of US$750 million 5.25% subordinated notes due 2082. The net proceeds, approximately US$740 million, will be used to repay certain senior notes and short-term borrowings related to the acquisition of 3500 MHz spectrum licenses in 2021. The offering is expected to close on February 11, 2022. The notes will not be registered under the Securities Act and are offered only to qualified institutional buyers and non-U.S. persons, complying with relevant regulations.

Positive

• Issuance of US$750 million in subordinated notes strengthens financial position.
• Proceeds will be used to repay senior notes and short-term borrowings.
• Improves liquidity by refinancing debt related to spectrum acquisition.

Negative

• Potential dilution of equity if notes are converted to equity in the future.
• -

TORONTO, Feb. 03, 2022 (GLOBE NEWSWIRE) -- Rogers Communications Inc. ("RCI") announced today that it has priced a private offering of US$750 million aggregate principal amount of 5.25% fixed-to-fixed rate subordinated notes due 2082 (the “Notes”). The net proceeds from the issuance of the Notes will be approximately US$740 million. RCI expects to use these net proceeds to repay a portion of its senior notes maturing this year and/or certain short-term borrowings that were used to fund, in part, its acquisition of 3500 MHz spectrum licenses in 2021. The offering of the Notes is expected to close on February 11, 2022.

The Notes will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws in the United States and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act and applicable state securities laws. Accordingly, the Notes are being offered and sold only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act and to non-U.S. persons outside the United States in accordance with Regulation S under the Securities Act. Additionally, the Notes were offered in Canada in reliance on exemptions from applicable Canadian prospectus requirements.

This news release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Rogers
Rogers is a leading Canadian technology and media company that provides world-class communications services and entertainment to consumers and businesses on our award-winning networks. Our founder, Ted Rogers, purchased his first radio station, CHFI, in 1960. Today, we are dedicated to providing industry-leading wireless, cable, sports, and media to millions of customers across Canada.

For further information:

Investor Relations
1-(844)-801-4792
investor.relations@rci.rogers.com

FAQ

What is the amount of the private offering by Rogers Communications (RCI)?

Rogers Communications has priced a private offering of US$750 million.

What interest rate is associated with the subordinated notes issued by RCI?

The subordinated notes have an interest rate of 5.25%.

When is the expected closing date for the offering of RCI's subordinated notes?

The offering is expected to close on February 11, 2022.

How will RCI use the proceeds from the subordinated notes?

The proceeds will be used to repay senior notes and short-term borrowings.

Are the subordinated notes registered under the Securities Act?

No, the notes will not be registered under the Securities Act.