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Aliant Telecom Inc. Announces Offer to Repay and Solicitation of Proxies for Meeting of Holders of 11.40% First Mortgage Bonds Series V due July 5, 2011 June 2006
Aliant announced today that Aliant Telecom Inc., as successor company to The Avalon Telephone Company, Limited, Newfoundland Telephone Company Limited and NewTel Communications Inc. ("Aliant Telecom"), has issued an offer to repay for cash all of the outstanding 11.40% First Mortgage Bonds, Series V due July 5, 2010 (the "Bonds").
The offer is for the Bonds to be repaid at a price equal to the Canada Yield Price together with accrued and unpaid interest to the repayment date (the "Repayment Price"). The Canada Yield Price is a price, calculated in accordance with generally accepted financial practice, which provides a yield to maturity in respect of the Bonds equal to the Government of Canada Yield on such date. The Government of Canada Yield is, on any date, the yield to maturity on such date assuming semi-annual compounding and calculated in accordance with generally accepted financial practice, which a non-callable Government of Canada bond denominated in Canadian dollars would carry if issued in Canada, at 100% of its principal amount on such date with a term to maturity, in years, of the Bonds. The Government of Canada Yield will be the average of the yields to maturity, in years, calculated by two major Canadian investment dealers, selected by the Company and approved by the trustee, Computershare Trust Company of Canada. The Canada Yield Price will be determined in reference to the Government of Canada Yield on the day that is three business days preceding the day that the Company takes up the Bonds under the offer, which is expected to be July 4, 2006. Therefore, the date on which the Government of Canada Yield will be calculated is expected to be June 30, 2006.
Further, Aliant Telecom has also provided notice that an extraordinary meeting of the holders of the Bonds, will be held on Tuesday, July 4, 2006 at 9:00 a.m. (Toronto time) at the offices of Blake, Cassels & Graydon LLP, Suite 2300, Commerce Court West, Toronto, Ontario, M5L 1A9. The purpose of the meeting is to consider, and if thought appropriate, pass an extraordinary resolution amending the trust indenture to allow the Bonds to be repaid by Aliant Telecom at any time at the same price provided in the offer to repay. If the extraordinary resolution is passed, Aliant Telecom anticipates taking up and paying the Repayment Price for the Bonds on July 4, 2006.
Aliant Telecom will pay a consent fee equal to $2.50 per $1,000.00 principal amount of the Bonds to all beneficial holders of Bonds that validly tender their proxies by June 27, 2006 and vote in favour of the extraordinary resolution.
Materials relating to the offer to repay and the solicitation of proxies for the meeting have been filed on SEDAR and mailed today to the Canadian Depository for Securities, the only registered holder of the Bonds. Therefore, any beneficial holder desiring to tender Bonds under the offer must direct his or her investment dealer, stockbroker, bank, trust company or other nominee to accept the offer in the manner required by his or her nominee.
Holders of these Bonds are encouraged to review the formal offer and notice for more details on the conditions of repayment and for earning the consent fee.
About Aliant(*)
From its home base in Atlantic Canada, Aliant delivers a wide variety of innovative and traditional communications services, including local and long distance telephony, wireless, Internet, e-commerce, interactive multimedia, data and managed network services, to more than two million consumers and over 80,000 enterprises. In addition to serving residential, small-to-medium sized business and enterprise customers in its home market, Aliant also serves business customers located in other parts of North America. Aliant complements its industry-leading telecommunications business with strengths in information technology solutions and knowledge-services applications. Aliant's approximately 8,400 employees build on its 100-plus year history by collaborating to deliver the highest quality of customer service, choice, and convenience. Aliant has a market capitalization of approximately $4.6 billion.
(*) On March 7, 2006 Aliant and BCE Inc. announced the creation of a new income trust. The companies will combine Aliant's wireline telecommunications operations in Atlantic Canada, information technology operations and other operations with Bell Canada's wireline telecommunications operations in its regional territories in Ontario and Quebec, and Bell Canada's 63.4 per cent interest in the Bell Nordiq Income Fund to form the Bell Aliant Regional Communications Income Fund. The new trust, which will have 3.4 million local access lines and over 400,000 high-speed Internet subscribers in six provinces, will be headquartered in Atlantic Canada with regional offices in Ontario and Québec. The transaction, which has received shareholder approval, is expected to close in the third quarter of 2006, subject to court and regulatory approvals and certain other closing conditions.
Media representatives are encouraged to sign up for Aliant News Alerts.
%SEDAR: 00012285E
For further information: Media Relations: Kelly Gallant, (902) 487-4642, kelly.gallant@aliant.ca; Investor Relations: Ian Chadsey, (506) 694-2220, ian.chadsey@aliant.ca
Source: newswire
All trademarks and copyrighted information contained herein are the property of their respective owners.
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