Bell Aliant Bonds / BCE Offer

For those wondering, the Bell Aliant bonds will not be touched following the take over of Bell Aliant by BCE. BCE will keep the debt as is (for now).

Actually, Bell Aliant bonds should trade a little bit higher because of the better credit rating of BCE. Beyond a stronger credit rating, the financial policy at Bell (1.75–2.25x net debt/EBITDA) is more conservative than that at Bell Aliant (2.2–2.5x).

For the common shares, the voting ends on September 19 and the deal is expected to close sometime before April 2015. BCE is simply buying what it didn’t own already.

All the Bell Aliant preferred phares are exchanged for new preferred shares of BCE, with the same financial terms as the existing preferred shares.


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