Bell Aliant to issue $350 million medium term notes

HALIFAX, Sept. 8 /CNW/ - Bell Aliant Regional Communications, Limited Partnership ("Bell Aliant LP") is pleased to announce that it has agreed to sell, on an agency basis, an aggregate $350 million principal amount of medium term notes (the "Notes") to mature on September 13, 2017. The Notes will be issued at a discount and carry a coupon of 4.37 per cent.

The issue is scheduled to close on September 13, 2010. On behalf of the Agents' syndicate, CIBC World Markets Inc., RBC Capital Markets and TD Securities Inc. will act as co-lead managers and co-bookrunners for the offering. All or substantially all of the net proceeds from the issuance of the Notes are intended to be used to make a partial redemption of the 4.72 per cent medium term notes due September 26, 2011 (the "2011 Notes") and any remaining proceeds are expected to be used for working capital and general corporate purposes.

The issue is being made pursuant to Bell Aliant LP's short form base shelf prospectus dated April 28, 2009.

Forward-looking statements

This news release contains forward-looking statements concerning future events and expectations, specifically relating to the planned use of the proceeds from the Notes issuance. These statements describe management's expectations at September 8, 2010. These statements are based on management's beliefs regarding future events, and are subject to risks and uncertainties that are beyond management's control. Therefore, actual events may differ materially from what is predicted. Assumptions made and risk factors considered in preparing our forward-looking statements are discussed in detail in Bell Aliant's fourth quarter 2009 earnings and 2010 guidance news release dated February 3, 2010, as well as in Bell Aliant Regional Communications Income Fund's and Bell Aliant Regional Communications Holdings, Limited Partnership's 2009 annual management's discussion and analysis (MD&A) and annual information forms, and their first and second quarter 2010 MD&As, which are available at www.bellaliant.ca or at www.sedar.com. The planned use of proceeds from issuance of the Notes is also subject to the satisfaction of all requirements to enable a partial redemption of the 2011 Notes. All forward-looking statements in this news release are qualified by these cautionary 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. Readers should not place undue reliance on any forward-looking statements.

About Bell Aliant

Bell Aliant (TSX: BA.UN) 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(TM) services. Through its operating entities it serves customers in six Canadian provinces with innovative information, communication and technology services including voice, data, Internet, video and value-added business solutions. Through its xwave offices, Bell Aliant also provides IT professional services and advanced technology solutions. Bell Aliant's employees deliver the highest quality of customer service, choice and convenience. More information can be found at www.bellaliant.ca.

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For further information: Media Relations: Alyson Queen, 866-696-6700, [email protected]; Investor Relations: Zeda Redden, 877-487-5726, [email protected]