Rogers Asks Bondholders to Change Terms as Shaw Deal Delayed

Rogers Communications Inc. said it’s seeking approval from investors who hold $9.35 billion of bonds to extend the deadline to complete its acquisition of Shaw Communications Inc.

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(Bloomberg) — Rogers Communications Inc. said it’s seeking approval from investors who hold $9.35 billion of bonds to extend the deadline to complete its acquisition of Shaw Communications Inc.

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Rogers has to repay the securities at 101 cents on the dollar if the C$20 billion ($15.3 billion) deal isn’t closed by the end of the year. The Toronto-based cable and wireless company wants to extend that to Dec. 31, 2023, according to a statement Monday. 

The deal has been held up by objections from Canada’s antitrust regulator, which has sued to stop the transaction and argues that it will damage competition in a telecommunications sector that’s already dominated by a handful of companies. Rogers and Shaw have agreed to sell most of Shaw’s wireless assets to address  those concerns, but the case appears headed to a hearing at the Competition Tribunal, Canada’s merger court. 

The companies have already agreed to change the deadline for the deal to Dec. 31, with the option to extend it to Jan. 31, 2023. 

The proposed change to the bonds applies to five series of U.S. dollar notes and three series of Canadian dollar notes, and requires the consent of a majority of holders.

The consent solicitation expires at 5 p.m. on Aug 31. Bank of America, Royal Bank of Canada and Bank of Nova Scotia are organizing the transaction.

(Updates with additional information on deal delays and terms.)