Rogers prices $1.1 billion bond offering

The cable and mobile phone company using proceeds to pay for its 37.5% stake in Maple Leafs Sports and Entertainment, and for general corporate purposes.
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Rogers Communications is raising $1.1 billion to pay for its 37.5% stake in Maple Leafs Sports and Entertainment (MLSE), via a two-tranche bond offering.

The debt financing comprises $500 million of 3% senior notes, due 2017, and another $600 million of 4% senior notes, due 2022.

Rogers and BCE in December 2011 unveiled a deal to jointly acquire a 75% stake in MLSE, which will add a raft of pro sport teams, including the Toronto Maple Leafs and Toronto Raptors, to their specialty TV sport assets.

Rogers and BCE bought a combined 79.5% stake in MLSE for $1.32 billion, before minority stakeholder Larry Tanenbaum raised his stake to 25% by purchasing a 4.5% stake from the Rogers-BCE consortium.

Rogers said it expects to net proceeds from the offering of around $1.09 billion, with the money to be used to repay outstanding advances under a bank credit facility and for general corporate purposes.

Rogers said in a statement late last week that it expected the bond sale to close by today.