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Last updated on April 20, 2014 at 14:04 EDT

Bell Aliant to redeem $400 million of 4.95 per cent medium term notes

June 14, 2013

HALIFAX, June 14, 2013 /CNW/ – Bell Aliant Inc. (“Bell Aliant”) (TSX:BA)
today announces the closing of the issue by Bell Aliant Regional
Communications, Limited Partnership (“Bell Aliant LP”), on an agency
basis, of $400 million principal amount of 3.54 per cent medium term
notes (the “Notes”). BMO Capital Markets, RBC Capital Markets and
Desjardins Securities acted as co-lead managers and BMO Capital Markets
and RBC Capital Markets acted as joint bookrunners for the offering.

As previously announced, the net proceeds from this issue will be used
to redeem in their entirety  the 4.95 per cent medium term notes due
February 26, 2014 (the “2014 Notes”) and for general corporate
purposes. Today, Bell Aliant LP has given a notice to the registered
holders of the 2014 Notes that it will redeem on June 25, 2013 (the
“Redemption Date”), the full $400 million principal amount outstanding,
of the 2014 Notes.

The 2014 Notes called for redemption will be redeemed on the Redemption
Date at a redemption price equal to the greater of the Canada Yield
Price and their principal amount, together with accrued and unpaid
interest to, but excluding, the Redemption Date.

Pursuant to the terms of the trust indenture governing the 2014 Notes,
the Canada Yield Price is a price equal to the price of the 2014 Notes
calculated to provide a yield to maturity equal to the Government of
Canada Yield plus 0.22 per cent on the third business day prior to the
Redemption Date. The Government of Canada Yield is, on any date, the
yield to maturity on such date, compounded semi-annually, which a
non-callable Government of Canada Bond would carry if issued, in
Canadian dollars in Canada, at 100 per cent of its principal amount on
such date with a term to maturity equal to the remaining term to
maturity of the 2014 Notes. The Government of Canada Yield used to
calculate the redemption price of the 2014 Notes will be the average of
the rates calculated by two registered Canadian investment dealers
selected by Bell Aliant LP.

Forward-looking statements 

This news release contains forward-looking statements concerning future
events and expectations, specifically relating to the planned use of
the proceeds from the Notes issuance to redeem the 2014 Notes. These
statements describe management’s expectations at June 14, 2013.These
statements are based on management’s beliefs regarding future events,
and are subject to risks and uncertainties that are beyond management’s
control. Therefore, actual events may differ materially from what is
predicted. Assumptions made and risk factors considered in preparing
our forward-looking statements are discussed in detail in the annual
management’s discussion and analysis of each of Bell Aliant Inc. and
Bell Aliant Regional Communications Inc. for the year ended December
31, 2012, as well as in Bell Aliant Inc.’s and Bell Aliant Regional
Communications Inc.’s annual information forms, which are available at www.bellaliant.ca or at www.sedar.com. The planned use of proceeds from issuance of the Notes is also subject
to the satisfaction of all requirements to enable redemption of the
2014 Notes. All forward-looking statements in this news release are
qualified by these cautionary statements, and there can be no assurance
that the results or events predicted will be realized. Except as may be
required by Canadian securities laws, Bell Aliant disclaims any
intention and assumes no obligation to update or revise any
forward-looking statement, even if new information becomes available,
as a result of future events or for any other reason. Readers should
not place undue reliance on any forward-looking statements.

About Bell Aliant

Bell Aliant (TSX: BA) is one of North America’s largest regional
communications providers and the first company in Canada to cover an
entire city with fibre-to-the-home (FTTH) technology with its FibreOP services. Through its operating entities it serves customers in six
Canadian provinces with innovative information, communication and
technology services including voice, data, Internet, video and
value-added business solutions. Bell Aliant’s employees deliver the
highest quality of customer service, choice and convenience.

SOURCE Bell Aliant Inc.


Source: PR Newswire