Rogers Communications Secures $2.1 Billion in Subordinated Notes
Rogers Communications Inc. Makes Headlines with Major Financing
Rogers Communications Inc. (TSX: RCI.A and RCI.B, NYSE: RCI) recently attracted significant attention by announcing the pricing of a substantial public offering of fixed-to-fixed rate subordinated notes. This offering, which totals US$2.1 billion, is poised to strengthen the company’s financial position and support ongoing strategic initiatives.
Details of the Offering
The public offering includes a dual series of U.S. dollar denominated subordinated notes. Specifically, the notes consist of US$1.1 billion with a fixed interest rate of 7.0% due in 2055, paired with an additional US$1.0 billion of notes yielding 7.125% also due in 2055. Together, these constitute the "US Notes." In conjunction with this, Rogers is executing a Canadian private placement offering 5.625% subordinated notes totalizing Cdn$1.0 billion, with similarly structured maturity in 2055.
Intended Use of Proceeds
Rogers anticipates using the net proceeds from these offerings—approximately US$2.07 billion from the US Notes and Cdn$989 million from the Cdn Notes—to refinance some of its existing debts and, notably, to fund a portion of the acquisition of BCE Inc.’s indirect stake in Maple Leaf Sports & Entertainment Inc. This acquisition aligns with Rogers' strategic growth objectives in the dynamic telecommunications and entertainment sectors.
Closing Timeline
Both offerings are expected to close shortly, on February 12, 2025. This expedited timeline reflects Rogers' agile approach in capitalizing on market opportunities, enhancing its financial portfolio in one swift move.
Regulatory Compliance and Offer Limitations
Rogers is taking prudent measures by adhering to the regulatory requirements associated with the issuance of these notes. The US Notes will be issued in accordance with a prospectus supplement filed with the U.S. Securities and Exchange Commission (SEC). However, it is crucial to note that these notes will not be available to Canadian residents, as they are not registered under the Securities Act, nor will they be offered in Canada.
About Rogers Communications Inc.
Rogers stands out as a leading communications and entertainment provider in Canada. Their shares are actively traded on the Toronto Stock Exchange as well as the New York Stock Exchange, showcasing their robust market presence. The company is committed to providing advanced telecommunications solutions and top-tier entertainment options, continually striving to enhance customer experiences.
Forward-Looking Information
It’s important for stakeholders to understand that this announcement may contain forward-looking statements. Rogers acknowledges that while these projections are developed with care, actual performance results may vary due to various factors beyond their control. Stakeholders should refer to Rogers’ public filings for comprehensive risk assessments that could influence financial outcomes.
Contact Information for Investors
For more details regarding the offering and other investor inquiries, you may contact Rogers’ Investor Relations team directly at 1-844-801-4792 or via email at investor.relations@rci.rogers.com.
Frequently Asked Questions
What is the total amount raised from the subordinated notes?
Rogers Communications Inc. has raised a total of US$2.1 billion from its public offering of subordinated notes.
What will Rogers Communications do with the proceeds?
The proceeds will be used to repay existing indebtedness and to fund the acquisition of BCE Inc.'s stake in Maple Leaf Sports & Entertainment Inc.
When is the expected closing date for these offerings?
The offerings are expected to close on February 12, 2025.
Are the US Notes available to Canadian residents?
No, the US Notes are not being offered in Canada or to any residents of Canada.
How can investors get more information?
Investors can reach out to Rogers’ Investor Relations at 1-844-801-4792 or email investor.relations@rci.rogers.com for more information.
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