Bell Canada (Bell) recently announced the launch of a public offer in Canada of $1.55 billion of aggregate in principal MTN Notes in 2 series following its medium-term note (MTN) program (the Canadian Offering). Its Cdn $1.0 billion 3.00 MTN Debentures at a Series M-54 will expire on March 17, 2031, and will be sold at the rate in the range of Cdn $99.914 for each $100 of principal with an interest rate of 3.010 percent. It is expected that the Cdn 550 million 4.05 MTN Debentures at 4.05 percent M-55 Series will expire on March 17, 2051, and will be offered at a cost in the range of Cdn $99.690 in principal amounts of $100, for an interest rate of 4.068 percent. These MTN Debentures are being publicly sold across all provinces in Canada through an agency syndicate. The finalization of the sale of MTN Debentures is expected to be on March 17, 2021, subject only to customary closing conditions. MTN Debentures MTN Debentures will be fully and wholly secured from BCE Inc.
Bell announced on the same day an open market in the United States of U.S. $1.1 billion in aggregate Principal amount in Notes of two Series (the U.S. Offering). Its US 600 million 0.750% Series US-3 Notes will mature on March 17, 2024, and will be offered at a cost in the range of U.S. $99.953 in principal amounts of $100, for the maturity rate of 0.766 percent. Notes worth $500 million 3.650% Series US-4 will mature on March 17, 2024. The U.S. $500,000 million 3.650% Series US-4 Notes will mature on March 17, 2051, and will be sold at a cost that is the U.S. $99.728 in $100 principle amount, for the maturity rate of 3.665 percent. The Notes are being offered to the public to investors in the United States through an underwriters syndicate. The closing of the offer of Notes is anticipated to take place on March 17, 2021, subject to the usual closing conditions. The Notes will be entirely and indefinitely secured from BCE Inc.
Bell plans to use the net proceeds of both the Canadian Offering and the U.S. Offering for the complete redemption or part of the Cdn 1 700,000,000 principal of 3.00 MTN Debentures at a %, Series M-40, due on October 3, 2022. Bell intends to apply any net proceeds of the offerings that are not used to pay for this purpose to repay short-term loans. The closings for each of the series MTN Notes and Debentures are not contingent on the other series.
MTN Debentures MTN Debentures are being issued under a short-form prospectus on the base shelf filed on November 16, 2020. It also contains the prospectus supplement that was filed on April 11, 2021. Bell filed the prospectus supplement on March 11, 2021, in the securities regulatory agencies of every province of Canada as part of its renewal of the MTN Program. Bell will submit a pricing supplement related to this matter with securities regulatory authorities across all areas in Canada. March 11, 2021, Bell also signed an agreement with dealers under which specific dealers agreed to serve as agents for future offerings of MTN Debentures and the planned offering of Series M54 MTN Debentures along with Series M-55 MTN Debentures. The MTN program permits Bell to sell as much as Cdn $6 billion in MTN Debentures from time date until December 16, 2022.
The U.S. Offering is being conducted within the United States under a prospectus supplement dated March 12, 2021, in conjunction with the short-form base shelf prospectus of Bell that was dated on November 16, 2020, filed in the Securities and Exchange Commission as part of an effective shelf registration statement on Form F-10. Notes are not being offered in Canada. Messages are not available to residents of Canada or residents of Canada.
The MTN Debentures haven't been or will not be legally registered as securities under the U.S. Securities Act of 1933 and its amendments (U.S. Securities Act) or any state securities laws. They may not be sold or offered for sale inside the United States or to or to the benefit or account or benefit of U.S. persons (as defined in Regulation S under the U.S. Securities Act).
This press release does not be construed as an offer to sell or an offer to purchase any security, nor will there be any sales of these securities in any jurisdiction where any offer, solicitation, or sale is unlawful before registration or qualifying pursuant to the laws governing securities of country.
Short-form copies of the prospectus on the base shelf as well as the prospectus supplement relating to the offer of Canadian MTN Debentures as well as those of the U.S. Notes filed with securities regulatory authorities in Canada and the United States, respectively, can be obtained by contacting the Investor Relations department of Bell Canada located in 8th floor of Building A 1 Carrefour Alexander-Graham Bell Verdun, Quebec, H3E 3B3 (telephone 1-800-339-6353). These documents can also be obtained electronically, depending on the applicable, via the System for Electronic Document Analysis and Retrieval of the Canadian Securities Administrators (SEDAR), at www.sedar.com, or on the Electronic Data Gathering, Analysis, and Retrieval system, managed through the U.S. Securities and Exchange Commission (EDGAR) at www.sec.gov.
A Cautionary Note Concerning Forward-Looking Information
Certain statements contained in this press release constitute forward-looking statements. These include statements regarding the timing and timing expected of the sale proposed for the Notes and the proposed selling of MTN Debentures, the intended use of the net proceeds from these sales, and other assertions that do not reflect facts. These forward-looking statements are made following the “safe harbor” provisions of the applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995. These statements, by their nature, are vulnerable to risks inherent and uncertainty. They are based on a variety of specific and general assumptions that create the possibility that the actual outcomes or events could be significantly different from those expressed or implied by these forward-looking statements. These statements are not a guarantee of future events or performance that we can provide, and we advise not to rely on any forward-looking statement. The forward-looking information contained in this press release reflects our expectations as of the date of this news release. They, therefore, could change in the future. In addition, unless required by the applicable securities laws, we are not under any obligation to revise or update the forward-looking statements in this press release in the event of any new information or future events, or any other reason. This press release makes these forward-looking statements solely to provide details about the proposed offerings mentioned in the preceding paragraphs. The reader is warned that this information may not be suitable for different motives. The timing and timing of the sales mentioned above of both the Notes and MTN Debentures MTN Debentures are subject to typical closing terms and other uncertainties and risks. In the same way, there is no guarantee that the proposed sale of either of the Notes or the MTN Debentures will be completed or be completed at the date as stated in this news release.
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