NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY
CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW
Stock symbol: MBT
WINNIPEG, Nov. 19, 2013 /CNW/ - Manitoba Telecom Services Inc. (TSX:
MBT) ("MTS Allstream" or the "Company") today announced that it has
entered into a "bought deal" financing agreement with a syndicate of
underwriters, led by CIBC and Scotiabank, under which the underwriters
have agreed to purchase from the Company and sell to the public
7,150,000 common shares of the Company ("Common Shares") at a purchase
price of $28.10 per Common Share (the "Offering Price"), for gross
proceeds of $200,915,000 (the "Offering"). The Company has also
granted the underwriters an over-allotment option (the "Over-Allotment
Option") to purchase up to a further 1,072,500 Common Shares at the
Offering Price, solely to cover their over-allocation position, if
any. The Over-Allotment Option will be exercisable in whole or in
part, at the sole discretion of the underwriters, at any time until and
including 30 days following the closing of the Offering.
The net proceeds from the Offering will be approximately $193 million,
determined after deducting the underwriters' commission but prior to
expenses of the Offering. In the event that the Over-Allotment Option
is exercised in full, the net proceeds to be received by MTS Allstream
will be approximately $222 million, determined after deduction of the
underwriters' commission but prior to expenses of the Offering. The
Company intends to use the net proceeds from the Offering to fulfill
future pension funding obligations (including prefunding its solvency
deficit and other potential future pension liabilities) and for general
corporate purposes. Strong investment returns, combined with an
approximate 70 basis point increase in interest rates since the
beginning of 2013 have helped reduce the Company's pension solvency
deficit. The Company believes that its planned prefunding will
eliminate solvency payments until at least 2016 and any need to incur
additional indebtedness to fund such obligations prior to such time.
The Offering is scheduled to close on or about December 6, 2013 and is
subject to normal regulatory approvals, including approval of the
Toronto Stock Exchange. Pursuant to the Offering, the Common Shares
will be offered in each of the provinces of Canada by way of a short
form prospectus, and by way of private placement in the United States
to Qualified Institutional Buyers pursuant to Rule 144A under the
United States Securities Act of 1933, as amended, and internationally
as permitted by the Company.
This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities in the United States. The
securities have not been and will not be registered under the United
States Securities Act of 1933, as amended (the "1933 Act"), or any
state securities laws and may not be offered or sold within the United
States or to, or for the account or benefit of U.S. persons (as defined
in Regulation S under the 1933 Act) absent such registration or an
applicable exemption from such registration requirements.
Forward-looking statements disclaimer
This news release includes forward-looking statements and information
(collectively, "statements") including, but not limited to, statements
pertaining to the Company's proposed public offering of Common Shares
and the prefunding of its pension solvency obligations. Examples of
statements that constitute forward-looking information may be
identified by words such as "believe", "expect", "project", "should",
"anticipate", "could", "target", "forecast", "intend", "plan",
"outlook", "see", "set", "pending" and other similar terms. All
forward-looking statements are made pursuant to the safe harbour
provisions of applicable Canadian securities legislation.
Forward-looking statements are subject to risks, uncertainties and
assumptions. As a consequence, actual results in the future may differ
materially from any forward-looking conclusion, forecast or projection,
whether expressed or implied. Therefore, forward-looking statements
should be considered carefully and undue reliance should not be placed
on them.
Please note that forward-looking statements in this news release reflect
Management's expectations as at November 19, 2013, and thus, are
subject to change thereafter. The Company disclaims any intention or
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except as
required by law. This news release and the financial information
contained herein have been approved by the Company's Board of
Directors.
Factors that could cause anticipated opportunities and actual results to
differ materially include, but are not limited to, matters identified
in the "Corporate update" section in this news release, as well as in
the "Risks and uncertainties" section and elsewhere in the Company's
third-quarter 2013 interim MD&A and the Company's 2012 annual MD&A,
which are available on the Company's website at
www.mtsallstream.com/investors and on the SEDAR website.
Manitoba Telecom Services Inc. (MTS Allstream)
MTS Allstream is one of Canada's leading national communication
solutions companies, providing innovative communications for the way
Canadians live and work today. The company has more than 100 years of
experience, with approximately 5,000 employees across Canada. MTS
Allstream's business is dynamic and consists of two operating
divisions. In Manitoba, MTS is the leading full-service
telecommunications provider for residential and business customers.
MTS's suite of services includes the latest in wireless technology,
broadband services, IPTV, voice services, home security, and an
extensive range of business solutions. Across Canada, Allstream is a
leader in IP communications and is the only national provider that
focuses exclusively on the business telecommunications market. MTS
Allstream has nearly two million customer connections spanning business
customers across Canada and residential consumers throughout the
province of Manitoba. The Company's extensive national fibre optic
network spans more than 30,000 kilometres. MTS Allstream has spent 12
consecutive years on the Jantzi Social Index for leadership in social
responsibility and is the recipient of the 2011 Governance Gavel Award
from the Canadian Coalition for Good Governance, recognizing clear and
effective public disclosure and leading governance practices.
MTS Allstream's common shares are listed on the TSX (trading symbol:
MBT). Customers, stakeholders and investors who want to learn more
about MTS Allstream are encouraged to visit: www.mtsallstream.com.
For more information about MTS's products and services, please visit www.mts.ca. For more information about Allstream's products and services, please
visit www.allstream.com.
SOURCE MTS Allstream