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Rogers Is Betting Big on Credit Markets in $16 Billion Shaw Deal


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(Bloomberg) To finance its $16 billion acquisition of a smaller rival, Rogers Communications Inc. plans to boost its debt load to a level so high that weaker companies would be at risk of being cut to junk. It’s a high-stakes wager that the Canadian telecom company will be able to cut costs and pay down its borrowings quickly after its takeover of Shaw Communications Inc.
The company is counting on demand for credit to remain strong after Verizon Communications Inc. sold $25 billion of bonds to help finance purchases of 5G airwaves last week. The debt sale, which tied for the sixth largest U.S. high-grade securities offering ever, garnered $109 billion in demand at the peak. ....

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Rogers Bets Big on Credit Markets in $16 Billion Shaw Deal

To finance its $16 billion acquisition of a smaller rival, Rogers Communications Inc. plans to boost its debt load to a level so high that weaker companies would be at risk of being cut to junk. It’s a high-stakes wager that the Canadian telecom company will be able to cut costs and pay down its borrowings quickly after its takeover of Shaw Communications Inc. ....

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