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BCE Inc
> BCE may have $200 million in savings in interest costs?
Post by
flush777 on Sep 20, 2024 8:15am
BCE may have $200 million in savings in interest costs?
Globe says BCE seen in slower revenue environment
2024-09-20 04:58 ET - In the News
The Globe and Mail reports in its Friday edition that RBC Dominion Securities analyst Drew McReynolds views BCE's sale of its 37.5-per-cent interest in Maple Leaf Sports & Entertainment to rival Rogers Communications as a logical outcome. The Globe's David Leeder writes in the Eye On Equities column that Mr. McReynolds sees this move as indicative of proactive balance sheet management that has provided improved visibility on the delevering trajectory. Mr. McReynolds notes BCE is navigating a slower revenue environment. The $4.7-billion transaction was made, in part, to pay down debt. Mr. McReynolds is sticking with his "sector perform" call, while tweaking his share price ahead $2 to $53. Analysts on average target BCE shares at $50.46. Mr. McReynolds says in a note: "MLSE proceeds [were] higher than expected. Management indicated that net proceeds after tax are expected to be approximately $4.1-billion and will be directed toward debt repayment and supporting the company's ongoing transformation from telco to techco. ... Simplistically, net proceeds of $4.1-billion fully directed toward debt repayment would equate to $200-million in lower annualized cash interest costs (assuming a 5 per cent cost of debt)."
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