Rogers Communications Plans Amalgamation with its Cable and Wireless Subsidiaries
14 Mayo 2007 - 4:01PM
PR Newswire (US)
Rogers Wireless to Redeem Senior Secured Debentures due 2016;
TORONTO, May 14 /PRNewswire-FirstCall/ -- Rogers Communications
Inc. ("RCI") (TSX: RCI; NYSE: RG) announced today that its wholly
owned subsidiaries Rogers Cable Inc. ("Cable") and Rogers Wireless
Inc. ("Wireless") have sent notices to the respective trustees of
each of their public debt indentures, the agent of Cable's bank
credit facility and each of their various secured swap
counterparties stating that, subject to certain conditions, all
security provided by bonds issued under the Cable deed of trust and
the Wireless deed of trust will be released on or about Thursday,
June 28, 2007. Upon release of the security under the deeds of
trust, none of Cable's and Wireless' bank debt, public debt or
swaps will remain secured by such bonds. In addition, today
Wireless issued a notice to redeem on June 21, 2007, all of the
US$155 million principal amount of 9.75% senior secured debentures
due 2016 at the redemption price plus accrued interest to the date
of redemption. The redemption price will include a make whole
premium based on the present values of the remaining scheduled
payments. These actions are the initial steps in a series of
currently planned reorganization steps intended to culminate in the
amalgamation of RCI with Cable and Wireless on or about July 1,
2007. The amalgamated entity will continue as RCI. Cable and
Wireless will no longer be separate corporate entities and will
cease to be reporting issuers. This planned intracompany
amalgamation of the parent and subsidiary entities does not impact
the consolidated results previously reported by RCI. Upon
completion of the planned amalgamation, RCI will assume all of the
rights and obligations under all of the then outstanding Cable and
Wireless public debt indentures and swaps. RCI is pursuing this
planned amalgamation principally to simplify its corporate
structure while streamlining many of the related reporting and
compliance obligations. As part of the planned amalgamation
process, RCI intends to cancel the currently outstanding $1 billion
Cable bank credit facility, the $700 million Wireless bank credit
facility and the $600 million bank credit facility of RCI's wholly
owned subsidiary, Rogers Media Inc., and replace them with a new
unsecured bank credit facility of similar aggregate size at RCI
that is currently being arranged. Upon amalgamation, the
outstanding Cable and Wireless public debt and respective swaps, as
well as the planned RCI bank credit facility, will all be
unsecured. About Rogers: Rogers Communications Inc. (TSX: RCI;
NYSE: RG) is a diversified Canadian communications and media
company engaged in three primary lines of business. Rogers Wireless
is Canada's largest wireless voice and data communications services
provider and the country's only carrier operating on the world
standard GSM technology platform. Rogers Cable and Telecom is
Canada's largest cable television provider offering cable
television, high-speed Internet access, residential telephony
services, and video retailing, while its Rogers Business Solutions
division is a national provider of voice communications services,
data networking, and broadband Internet connectivity to small,
medium and large businesses. Rogers Media is Canada's premier
collection of category leading media assets with businesses in
radio and television broadcasting, televised shopping, publishing
and sports entertainment. Caution Regarding Forward-Looking
Statements: This release includes forward-looking statements and
assumptions concerning the future performance of our business, its
operations and its financial performance and condition. These
forward-looking statements include, but are not limited to,
statements with respect to our objectives and strategies to achieve
those objectives, as well as statements with respect to our
beliefs, plans, expectations, anticipations, estimates or
intentions. Statements containing expressions such as "could",
"expect", "may", "anticipate", "assume", "believe", "intend",
"estimate", "plan", "guidance", and similar expressions generally
constitute forward-looking statements. Such forward-looking
statements are based on current expectations and various factors
and assumptions applied which we believe to be reasonable at the
time. We caution that all forward-looking information is inherently
uncertain and that actual results may differ materially from the
assumptions, estimates or expectations reflected in the
forward-looking information. Accordingly, we warn investors to
exercise caution when considering any such forward-looking
information herein and to not place undue reliance on such
statements and assumptions. We are under no obligation (and we
expressly disclaim any such obligation) to update or alter any
forward-looking statements or assumptions whether as a result of
new information, future events or otherwise, except as required by
law. DATASOURCE: Rogers Communications Inc. CONTACT: Lorraine Daly,
(416) 935-3575, ; Bruce M. Mann, (416) 935-3532, ; Dan Coombes,
(416) 935-3550,
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