Rogers Wireless Communications is using short-term financing to fund its C$1.4 billion acquisition of Microcell Telecommunications and will visit the public debt markets once the acquisition is complete. Rogers Wireless is using its existing C$700 million credit facility, led by Scotia Capital, and cash on hand as well as an intercompany loan and bridge loan from Rogers Communications to purchase Microcell, explained Eric Wright, director of investor relations with parent company Rogers Communications.
Additionally, Rogers Communications is acquiring all of AT&T Wireless Services' shares of Rogers Wireless. That transaction is being funded through a two-year bridge facility. Wright declined to say which banks are leading the loan other than it will be a group of Canadian financial institutions. Once the AT&T transaction is closed on Oct. 13 the bridge loan will be moved down from Rogers Communications to Rogers Wireless, he explained.
After the two acquisitions are closed the company will go to the public debt markets to arrange financing for both transactions at the same time, Wright explained. "Our intention is once both Microcell is completed and the debt related to AT&T is transferred down to Rogers Wireless that is when we go to the debt market--when we have something clear to finance and complete," he added.