Bell Canada Announces Offering Of US$2.25 Bln Of Fixed-to-Fixed Rate Junior Subordinated Notes

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(RTTNews) - Bell Canada announced the offering of US$2.25 billion aggregate principal amount of Fixed-to-Fixed Rate Junior Subordinated Notes in two series.

The US$1 billion Fixed-to-Fixed Rate Junior Subordinated Notes, Series A due 2055 will initially bear interest at an annual rate of 6.875% and reset every five years starting on September 15, 2030 at an annual rate equal to the five-year U.S. Treasury rate plus a spread of 2.390%, provided that the interest rate during any five-year interest period will not reset below 6.875%.

The US$1.25 billion Fixed-to-Fixed Rate Junior Subordinated Notes, Series B due 2055 will initially bear interest at an annual rate of 7.000% and reset every five years starting on September 15, 2035 at an annual rate equal to the five-year U.S. Treasury rate plus a spread of 2.363%, provided that the interest rate during any five-year interest period will not reset below 7.000%.

Closing of the Offering is expected to occur on February 18, 2025, subject to customary closing conditions. The Notes will be fully and unconditionally guaranteed by BCE Inc.

Bell said it 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.