Bell Aliant to redeem $400 million of 4.95 per cent medium term notes

HALIFAX, June 14, 2013 /CNW/ - Bell Aliant Inc. ("Bell Aliant") (TSX:BA) today announces the closing of the issue by Bell Aliant Regional Communications, Limited Partnership ("Bell Aliant LP"), on an agency basis, of $400 million principal amount of 3.54 per cent medium term notes (the "Notes"). BMO Capital Markets, RBC Capital Markets and Desjardins Securities acted as co-lead managers and BMO Capital Markets and RBC Capital Markets acted as joint bookrunners for the offering.

As previously announced, the net proceeds from this issue will be used to redeem in their entirety  the 4.95 per cent medium term notes due February 26, 2014 (the "2014 Notes") and for general corporate purposes. Today, Bell Aliant LP has given a notice to the registered holders of the 2014 Notes that it will redeem on June 25, 2013 (the "Redemption Date"), the full $400 million principal amount outstanding, of the 2014 Notes.

The 2014 Notes called for redemption will be redeemed on the Redemption Date at a redemption price equal to the greater of the Canada Yield Price and their principal amount, together with accrued and unpaid interest to, but excluding, the Redemption Date.

Pursuant to the terms of the trust indenture governing the 2014 Notes, the Canada Yield Price is a price equal to the price of the 2014 Notes calculated to provide a yield to maturity equal to the Government of Canada Yield plus 0.22 per cent on the third business day prior to the Redemption Date. The Government of Canada Yield is, on any date, the yield to maturity on such date, compounded semi-annually, which a non-callable Government of Canada Bond would carry if issued, in Canadian dollars in Canada, at 100 per cent of its principal amount on such date with a term to maturity equal to the remaining term to maturity of the 2014 Notes. The Government of Canada Yield used to calculate the redemption price of the 2014 Notes will be the average of the rates calculated by two registered Canadian investment dealers selected by Bell Aliant LP.

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 to redeem the 2014 Notes. These statements describe management's expectations at June 14, 2013.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 the annual management's discussion and analysis of each of Bell Aliant Inc. and Bell Aliant Regional Communications Inc. for the year ended December 31, 2012, as well as in Bell Aliant Inc.'s and Bell Aliant Regional Communications Inc.'s annual information forms, 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 redemption of the 2014 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) 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 it 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.

SOURCE: Bell Aliant Inc.