DBRS Places Glentel Inc. Under Review with Positive Implications

DBRS Limited (DBRS) has today placed the Issuer Rating of Glentel Inc. (Glentel or the Company) Under Review with Positive Implications following the Company’s announcement that it has entered into a definitive agreement whereby BCE Inc. (rated BBB (high) by DBRS) will acquire all of the issued and outstanding shares of Glentel for $592 million. As part of the transaction, BCE Inc. will assume net debt and minority interest of approximately $78 million.

The Positive Implications of the Under Review status reflect the stronger credit profile of BCE Inc./Bell Canada. In its review, DBRS will assess the final form and structure of the transaction. The transaction is subject to customary closing conditions, including court, shareholder and competition approvals.

DBRS will aim to resolve its review upon the closing of the transaction. Should BCE Inc. successfully acquire Glentel and take the Company private, DBRS’s Issuer Rating may no longer be relevant and could be discontinued.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating Companies in the Merchandising Industry, which can be found on our website under Methodologies.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.