SCARBOROUGH, Ontario-Clearnet Communications Inc. said it entered into an underwriting agreement to raise cash proceeds of $256 million from the sale of its 10.13-percent senior discount notes due May 2009.
Clearnet said the notes are being sold at a substantial discount from their principal amount, and there will not be any payment of interest prior to Nov. 1, 2004. Net proceeds will be used to fund a portion of capital expenditures related to the company’s Mike enhanced specialized mobile radio and personal communications services wireless networks, among other things.
Lead manager for the offering was TD Securities. CIBC Oppenheimer, Credit Suisse First Boston and RBC Dominion Securities Corp. acted as co-managers.
The company also announced its subsidiary, Clearnet Inc., closed a $236.7 million senior secured debt facility with a syndicate of leading Canadian banks.
