Rogers’ bond revision set to move forward after dissenters fail to rally votes

By Divya Rajagopal

TORONTO (Reuters) – A bunch of Rogers Communications bond holders have did not win sufficient votes to power adjustments to the corporate’s proposal to delay redemption of its $9.35 billion bond by a yr, two individuals accustomed to the matter stated on Monday.

Canadian and U.S. bond holder teams wished greater charges than the corporate proposed for accepting the adjustments and to delay the deadline for acceptance of Rogers’ proposal. They want 50% plus one vote to derail Rogers’ plan and should determine by Wednesday.

Regulation agency Akin Gump, which was amassing petitions from bond holders for the counterproposal, has not acquired sufficient help, stated one particular person conscious of the developments who didn’t want to be quoted as a result of sensitivity of the problem.

“Most bond holders are prone to settle for the proposal in its present kind,” stated a fund supervisor from a Toronto primarily based funding agency.

The telecom and wi-fi firm final week proposed the extension of its particular obligatory redemption notes, due on the finish of the yr, to December 2023. That will hold funding safe for the completion of its merger with Shaw Communications, which is dealing with anti-trust hurdles and is predicted additionally to shut in January 2023.

The dissenting bond holders wished extra time to think about the proposal and to extend a consent charge supplied by the corporate of $24 to $40 per $1,000 of bonds held..

Rogers and Akin Gump didn’t instantly reply to requests for remark.

(Reporting by Divya Rajagopal; Enhancing by Cynthia Osterman)