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THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY
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Stock symbol: MBT
WINNIPEG, Dec. 6, 2013 /CNW/ - Manitoba Telecom Services Inc. (TSX: MBT)
("MTS Allstream" or the "Company") today announced that it has closed
its previously announced "bought deal" financing agreement of 8,855,000
common shares of the Company ("Common Shares") issued at a purchase
price of $28.10 per Common Share, for gross proceeds of $248,825,500
(the "Offering"). There was no over-allotment option granted in
connection with the Offering. The underwriting syndicate for the
Offering was co-led by CIBC World Markets Inc. and Scotia Capital Inc.,
and also included BMO Nesbitt Burns Inc., RBC Dominion Securities Inc.,
National Bank Financial Inc., TD Securities Inc., Canaccord Genuity
Corp. and GMP Securities L.P.
The net proceeds from the Offering were approximately $238 million,
determined after deducting the underwriters' commission and expenses of
the Offering. As previously announced, 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 longer if interest rates rise.
The Company has said it expects to deliver significant increases in free
cash flow and growth across its strategic product lines in 2014, and
expects that it will not be taxable before 2020 at the earliest. MTS
Allstream maintains an attractive dividend fully supported by strong
and growing free cash flow from its incumbent position in Manitoba,
combined with interesting growth opportunities at Allstream, and
remains committed to maintaining an investment grade credit rating.
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, including, but
not limited to, statements pertaining to the Company's proposed use of
the net proceeds of the Offering, the Company's expectation that the
prefunding of pension solvency obligations will eliminate solvency
payments until at least 2016, and longer if interest rates rise,
expected significant increases in free cash flow and growth across
strategic product lines in 2014 and the expectation that the Company
will not be taxable before 2020 at the earliest. 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 December 6, 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.
Factors that could cause actual results to differ materially include,
but are not limited to, matters identified 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
