{"id":18133,"date":"2012-03-16T21:20:57","date_gmt":"2012-03-17T01:20:57","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=18133"},"modified":"2012-03-16T21:20:57","modified_gmt":"2012-03-17T01:20:57","slug":"march-16-2012","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=18133","title":{"rendered":"March 16, 2012"},"content":{"rendered":"

BCE is buying Astral Media<\/a>:<\/p>\n

BCE Inc.\u2019s (BCE-T39.64-0.42-1.05%) massive bet on media is going truly national, as the communications giant makes a $3-billion play for Astral Media Inc. (ACM.A-T48.5512.3033.93%)to shore up its broadcasting business in the one province where it was weak: Quebec.<\/p>\n

The deal, announced Friday, gives the country\u2019s largest communications firm a stable of French-language television and radio stations to compete with rival Quebecor Inc. It also cements BCE\u2019s position as the leading force of consolidation in Canada\u2019s media industry: Since 2010, it has announced deals worth nearly $7-billion to buy control of CTV Inc., Maple Leafs Sports and Entertainment Ltd., and now Montreal-based Astral.<\/p><\/blockquote>\n

DBRS considers it a non-event for credit<\/a>:<\/p>\n

DBRS has today confirmed the long- and short-term ratings of BCE Inc. (BCE) and its wholly-owned operating subsidiary, Bell Canada (the Company), at BBB (high)\/R-1 (low) and A (low)\/R-1 (low), respectively, following BCE Inc. and Bell Canada\u2019s announcement today that they have entered into a definitive agreement to purchase the shares of Astral Media Inc. (Astral Media) for roughly $3 billion (valuing Astral Media at a total enterprise value of roughly $3.4 billion). The trend on all ratings is Stable.<\/p>\n

With an EBITDA multiple of roughly 10 times (x) Astral Media\u2019s F2012 EBITDA, DBRS notes that this transaction is reasonable and consistent with other recent media transactions in Canada. BCE\/Bell Canada plans to fund the acquisition of the equity purchase price with cash\/debt (for roughly three-quarters) and BCE Inc. common shares (for the remaining quarter, or $750 million). As part of the transaction, Ian Greenberg \u2013 one of the co-founders of Astral Media \u2013 will join the board of BCE Inc. upon closure of the acquisition.
…<\/b>
From a financial perspective, DBRS notes that leverage is expected to increase for Bell Canada with the addition of Astral Media, from approximately 1.8x gross debt-to-EBITDA expected at the end of 2011 to roughly 2.0x expected at the end of 2013. However, the Company\u2019s commitment to deleverage within 24 months of the close of the transaction gives DBRS greater comfort that Bell Canada\u2019s leverage will improve to more historical levels (and back within its own target range).<\/p><\/blockquote>\n

It was another quiet day for the Canadian preferred share market, with PerpetualPremiums down 5bp, FixedResets gaining 7bp and DeemedRetractibles off 5bp. The Performance Highlights table is suitably short. Volume was quite low.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.2440 %<\/td>\n2,448.3<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.57 %<\/td>\n3.96 %<\/td>\n38,510<\/td>\n17.35<\/td>\n1<\/td>\n-0.0961 %<\/td>\n3,412.5<\/td>\n<\/tr>\n
Floater<\/td>\n2.95 %<\/td>\n2.93 %<\/td>\n48,666<\/td>\n19.91<\/td>\n3<\/td>\n0.2440 %<\/td>\n2,643.6<\/td>\n<\/tr>\n
OpRet<\/td>\n4.92 %<\/td>\n2.64 %<\/td>\n54,511<\/td>\n1.25<\/td>\n6<\/td>\n0.3805 %<\/td>\n2,506.2<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.28 %<\/td>\n-2.61 %<\/td>\n83,675<\/td>\n0.75<\/td>\n4<\/td>\n-0.1195 %<\/td>\n2,675.0<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.3805 %<\/td>\n2,291.7<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.40 %<\/td>\n0.77 %<\/td>\n100,944<\/td>\n0.21<\/td>\n25<\/td>\n-0.0529 %<\/td>\n2,214.8<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.10 %<\/td>\n5.07 %<\/td>\n189,730<\/td>\n15.28<\/td>\n7<\/td>\n0.1239 %<\/td>\n2,424.8<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.05 %<\/td>\n3.00 %<\/td>\n193,724<\/td>\n2.22<\/td>\n67<\/td>\n0.0658 %<\/td>\n2,385.2<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.95 %<\/td>\n3.92 %<\/td>\n200,489<\/td>\n2.89<\/td>\n46<\/td>\n-0.0511 %<\/td>\n2,306.0<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
SLF.PR.G<\/td>\nFixedReset<\/td>\n-1.00 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.65
\nBid-YTW : 3.55 %<\/td>\n<\/tr>\n
NA.PR.M<\/td>\nDeemed-Retractible<\/td>\n1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-05-15
\nMaturity Price : 26.00
\nEvaluated at bid price : 27.21
\nBid-YTW : 2.12 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
BAM.PF.A<\/td>\nFixedReset<\/td>\n292,467<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-03-16
\nMaturity Price : 23.05
\nEvaluated at bid price : 24.87
\nBid-YTW : 4.33 %<\/td>\n<\/tr>\n
MFC.PR.A<\/td>\nOpRet<\/td>\n90,266<\/td>\nRBC crossed blocks of 50,000 and 36,300 shares, both at 25.75.
\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2015-12-18
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.71
\nBid-YTW : 3.30 %<\/td>\n<\/tr>\n
MFC.PR.H<\/td>\nFixedReset<\/td>\n54,219<\/td>\nRBC crossed 37,000 shares at 25.20.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-03-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.18
\nBid-YTW : 4.53 %<\/td>\n<\/tr>\n
RY.PR.F<\/td>\nDeemed-Retractible<\/td>\n53,270<\/td>\nTD crossed 50,000 at 25.60.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-05-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.50
\nBid-YTW : 4.02 %<\/td>\n<\/tr>\n
ENB.PR.D<\/td>\nFixedReset<\/td>\n46,165<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-03-16
\nMaturity Price : 23.26
\nEvaluated at bid price : 25.48
\nBid-YTW : 3.67 %<\/td>\n<\/tr>\n
TD.PR.R<\/td>\nDeemed-Retractible<\/td>\n43,187<\/td>\nRBC crossed 20,700 at 26.80.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-04-30
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.82
\nBid-YTW : 3.11 %<\/td>\n<\/tr>\n
There were 21 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n
Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nQuote Data and Yield Notes<\/td>\n<\/tr>\n
BNS.PR.Y<\/td>\nFixedReset<\/td>\nQuote: 25.28 – 25.59
\nSpot Rate : 0.3100
\nAverage : 0.2150<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.28
\nBid-YTW : 2.87 %<\/td>\n<\/tr>\n

BMO.PR.M<\/td>\nFixedReset<\/td>\nQuote: 25.91 – 26.16
\nSpot Rate : 0.2500
\nAverage : 0.1629<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-08-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.91
\nBid-YTW : 2.64 %<\/td>\n<\/tr>\n

FTS.PR.G<\/td>\nFixedReset<\/td>\nQuote: 25.50 – 25.83
\nSpot Rate : 0.3300
\nAverage : 0.2501<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-03-16
\nMaturity Price : 23.92
\nEvaluated at bid price : 25.50
\nBid-YTW : 3.53 %<\/td>\n<\/tr>\n

CU.PR.B<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.45 – 25.65
\nSpot Rate : 0.2000
\nAverage : 0.1336<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-06-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.45
\nBid-YTW : -1.34 %<\/td>\n<\/tr>\n

CIU.PR.A<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.21 – 25.49
\nSpot Rate : 0.2800
\nAverage : 0.2212<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2042-03-16
\nMaturity Price : 24.92
\nEvaluated at bid price : 25.21
\nBid-YTW : 4.58 %<\/td>\n<\/tr>\n

PWF.PR.F<\/td>\nPerpetual-Premium<\/td>\nQuote: 25.25 – 25.52
\nSpot Rate : 0.2700
\nAverage : 0.2120<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-04-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.25
\nBid-YTW : 0.77 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

BCE is buying Astral Media: BCE Inc.\u2019s (BCE-T39.64-0.42-1.05%) massive bet on media is going truly national, as the communications giant makes a $3-billion play for Astral Media Inc. (ACM.A-T48.5512.3033.93%)to shore up its broadcasting business in …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-18133","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/18133","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18133"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/18133\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18133"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18133"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18133"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}