Cogeco taps debt market for C$200M in senior secured notes
What's the deal? Cogeco CommunicationsDealroom has a profile for this one. Try Dealroom → has priced C$200 million of additional 5.299% senior secured notes due February 16, 2033. The Montréal-based telecom provider plans to close the offering on or about August 10, 2026.
How it's structured: The notes reopen an existing C$300 million series issued in February 2023, forming a single fungible batch on identical terms. They were priced at 103.966% of face value, for a reopening yield of 4.565%.
Who's involved: BMO Capital MarketsDealroom has a profile for this one. Try Dealroom →, CIBC Capital MarketsDealroom has a profile for this one. Try Dealroom →, and National Bank FinancialDealroom has a profile for this one. Try Dealroom → acted as joint bookrunners and co-lead managers. Merrill Lynch Canada, Desjardins SecuritiesDealroom has a profile for this one. Try Dealroom →, RBC Dominion SecuritiesDealroom has a profile for this one. Try Dealroom →, MUFG Securities (Canada), TD SecuritiesDealroom has a profile for this one. Try Dealroom →, and Casgrain & CompanyDealroom has a profile for this one. Try Dealroom → served as co-managers.
What's the money for? CogecoDealroom has a profile for this one. Try Dealroom → intends to use the net proceeds to repay existing debt and for general corporate purposes. The notes carry provisional ratings of BBB (low) with a stable trend from DBRS MorningstarDealroom has a profile for this one. Try Dealroom → and BBB- from Standard & PoorDealroom has a profile for this one. Try Dealroom →'s.
The company: Cogeco provides internet, wireless, video, and wireline phone services to 1.6 million residential and business subscribers in Canada and 13 US states. It markets under the Cogeco and oxio brands in Canada and BreezelineDealroom has a profile for this one. Try Dealroom → and weloDealroom has a profile for this one. Try Dealroom → in the US, and its subordinate voting shares trade on the Toronto Stock Exchange under CCA.
The signal: The reopening lets Cogeco tap investor demand for an established series rather than launch fresh paper, refinancing debt through the private placement market. For a capital-intensive telecom, steady access to secured funding underpins network investment across two countries.
Read more: newswire.telecomramblings.com
Image credit: Marc-Antoine Berthiaume
