THIS MEDIA RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Yield of 4.55 per cent for initial five year period
HALIFAX, Nov. 21, 2011 /CNW/ - Bell Aliant Inc. ("Bell Aliant") (TSX: BA) announced today that its subsidiary Bell Aliant Preferred
Equity Inc. (the "Company") will be issuing 4,000,000 Cumulative Rate
Reset Preferred Shares, Series C (the "Series C Preferred Shares"), at
a price of $25.00 per Series C Preferred Share, for aggregate gross
proceeds of $100 million on a bought-deal basis to a syndicate of
underwriters led by RBC Capital Markets, Scotia Capital and BMO Capital
The underwriters have been granted an over-allotment option to purchase
an additional 600,000 Series C Preferred Shares at the offering price.
Should the over-allotment option be fully exercised, the total gross
proceeds of the Series C Preferred Share offering will be $115 million.
The Series C Preferred Shares will pay cumulative dividends of $1.1375
per share per annum, yielding 4.55 per cent, payable quarterly if, as
and when declared by the Company's board of directors (with the first
quarterly dividend to be paid on March 31, 2012), for the initial five
year period ending March 31, 2017. The dividend rate will be reset on
March 31, 2017 and every five years thereafter at a rate equal to the
five-year Government of Canada bond yield plus 3.09 per cent. The
Series C Preferred Shares will be redeemable by the issuer on or after
March 31, 2017, in accordance with their terms.
Holders of the Series C Preferred Shares will have the right, at their
option, to convert their shares into Cumulative Floating Rate Preferred
Shares, Series D, (the "Series D Preferred Shares") subject to certain
conditions, on March 31, 2017 and on March 31 every five years
thereafter. Holders of the Series D Preferred Shares will be entitled
to receive cumulative quarterly floating dividends at a rate equal to
the three-month Government of Canada Treasury Bill yield plus 3.09 per
cent, if, as and when declared by the Company's board of directors.
The Series C Preferred Shares will be offered for sale to the public in
each of the provinces and territories of Canada pursuant to a short
form prospectus to be filed with Canadian securities regulatory
authorities in all Canadian provinces and territories. The offering is
scheduled to close on or about December 7, 2011, subject to certain
conditions, including obtaining all necessary regulatory approvals.
The net proceeds of this offering will be used to make a lump-sum
voluntary contribution to certain of Bell Aliant's pension plans and
for general corporate purposes.
The Series C Preferred Shares have not been, nor will they be,
registered under the United States Securities Act of 1933, as amended,
or any state securities laws and may not be offered or sold in the
United States or to U.S. persons absent registration or applicable
exemption from the registration requirement of such Act and applicable
state securities laws. This news release shall 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 jurisdiction in which such offer,
solicitation or sale would be unlawful prior to qualification under the
securities laws of any such jurisdiction.
This news release contains forward-looking statements concerning the
expected issuance and sale of Series C Preferred Shares and the use of
proceeds from the issuance. These statements are based on the current
terms of the offering agreement between the Company and the
underwriters and management's expectations at November 21, 2011, and
are subject to change after that date. The statements are subject to
important risks and uncertainties, including customary termination
rights and closing conditions. Therefore, actual results and events may
differ materially from these forward-looking statements, and there can
be no assurance that the results or events predicted will be realized.
Except as may be required by Canadian securities laws, Bell Aliant
disclaims any intention and assumes no obligation to update or revise
any forward-looking statement even if new information becomes
available, as a result of future events or for any other reason.
About Bell Aliant
Bell Aliant Inc. (TSX: BA) is one of North America's largest regional
communications providers and the first company in Canada to cover an
entire city with fibre-to-the-home (FTTH) technology with its FibreOP™
services. Through its operating entities, Bell Aliant serves customers
in six Canadian provinces with innovative information, communication
and technology services, including voice, data, Internet, video and
value-added business solutions. Bell Aliant's employees deliver the
highest quality of customer service, choice and convenience. For more
information, visit www.bellaliant.ca.
SOURCE BELL ALIANT INC.
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