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Aliant Telecom Inc. to Redeem all Outstanding 10.60% First Mortgage Bonds, Series T, 11.15% First Mortgage Bonds, Series U, 9.77% First Mortgage Bonds2 June 2006
Aliant announced today that Aliant Telecom Inc., as successor company to The Island Telephone Company, Limited (the "Company"), has given a conditional notice of redemption to the holders of its (a) 10.60% First Mortgage Bonds, Series T, (b) 11.15% First Mortgage Bonds, Series U, (c) 9.77% First Mortgage Bonds, Series V, and (d) 8.76% First Mortgage Bonds, Series W (collectively, the "Bonds").
The Bonds will be redeemed at a redemption price equal to the greater of the Canada Yield Price or par, together in each case with accrued and unpaid interest to the redemption date, in accordance with the terms of the Trust Indenture governing the Bonds. Pursuant to the terms of the Trust Indenture governing the Bonds, the Canada Yield Price is the price for the Bonds calculated on the business day preceding the date on which the Company gives notice of redemption pursuant to the terms of the Trust Indenture governing the Bonds, to provide a yield to maturity equal to the Government of Canada Yield plus 0.50%. Pursuant to the terms of the Trust Indenture governing the Bonds, the Government of Canada Yield is, on any date, the yield to maturity on such date, assuming semi-annual compounding, which a non-callable Government of Canada Bond would carry if issued in Canadian dollars in Canada at 100% of its principal amount on such date with a term to maturity equal to the remaining term to maturity of the Bonds. The Government of Canada Yield will be the average of the yields determined by two major Canadian investment dealers selected by the Company and approved by the trustee, Computershare Trust Company of Canada.
The redemption of the Bonds is subject to satisfaction or waiver of the following conditions precedent on the redemption date: (i) issuance of the final order approving the Arrangement (as defined in the Company's Management Information Circular dated April 14, 2006), by the Supreme Court of Nova Scotia, (ii) receipt by each of Aliant Inc. and BCE Inc. of an advance income tax ruling from the Canada Revenue Agency regarding the tax treatment of certain aspects of the Arrangement, in form and substance satisfactory to Aliant Inc. and/or BCE Inc., each acting reasonably, (iii) the Regulatory Approvals (as that term is defined below) shall have been obtained or satisfied on terms and conditions satisfactory to BCE Inc. and Aliant Inc., each acting reasonably, and (iv) Aliant Inc. shall have received a certificate from BCE Inc. confirming that it is prepared to permit the Arrangement to be implemented (collectively, the "Conditions").
The redemption date will be the later of (a) July 3, 2006, if the Conditions have been satisfied or waived on or before June 29, 2006, or (b) the second business day immediately following the date on which all Conditions have been satisfied or waived; provided that such business day shall not be later than August 29, 2006. On June 28, 2006, the Company will publish a notice in The Globe and Mail to notify the holders of the Bonds (i) whether the Conditions have been satisfied or waived, (ii) whether the redemption date will occur on July 3, 2006, and (iii) if the redemption date will occur on July 3, 2006, the redemption price per C$1,000 of the principal amount of each of the series of Bonds. In the event that the redemption date will occur after July 3, 2006, the Company will, if available at such time, advise the holders of the Bonds of the anticipated redemption date and redemption price in the notice published in The Globe and Mail on June 28, 2006.
"Regulatory Approvals" means those sanctions, rulings, consents, order, exemptions, permits and other approvals (including the lapse, without objection, of a prescribed time under a statute or regulation that states that a transaction may be implemented if a prescribed time lapses following the giving of notice without an objection being made) of the Canadian Radio- television and Telecommunications Commission and compliance with the Bell Canada Act (Canada), the Radiocommunication Act (Canada) and the regulations to that Act and the Broadcasting Act (Canada) and the Broadcasting Distribution Regulations.
If the Bonds have not been redeemed by August 29, 2006, because the Conditions have not been satisfied or waived by August 25, 2006, then the conditional notice of redemption shall expire and the Bonds shall not be redeemed pursuant thereto.
A formal conditional notice of redemption will be mailed today to all registered holders of Bonds.
About Aliant(*)
Aliant serves customers across Atlantic Canada with innovative and traditional communications services, including local and long distance telephony, wireless, Internet, e-commerce, interactive multimedia, data and managed network services. 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 $4.5 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; Archived images on this organization are searchable through CNW Photo Archive website at http://photos.newswire.ca. Images are free to accredited members of the media.
Source: newswire
All trademarks and copyrighted information contained herein are the property of their respective owners.
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