SYS-CON MEDIA Authors: Pat Romanski, Sean Houghton, Glenn Rossman, Ignacio M. Llorente, Xenia von Wedel

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Rogers closes financings at historically low rates to fund purchase of 'beachfront' 700 MHz spectrum

700 MHz Spectrum to deliver ultimate video experience to customers over the long-term

TORONTO, March 10, 2014 /PRNewswire/ - Today Rogers Communications announced that it has closed its previously announced concurrent Cdn$ and US$ financing transactions of approximately $2.1 billion.  The net proceeds of these financings will be used, together with cash on hand and other available debt, to fund the "beachfront property" - 20 year licenses for two contiguous, paired blocks of lower band spectrum - acquired in the recent 700 MHz spectrum auction.

"We went after and won this spectrum because we know it will pay off for our customers for the next 20 years and likely beyond. Not only did we get the spectrum we wanted for our customers, but we have financed it with $2.1 billion of long term funding for up to 30 years at some of our lowest rates ever, with an average interest rate of just 3.9%. In addition, we have made this long term investment for our customers while maintaining our Baa1/BBB+/BBB+ senior credit ratings, which have been affirmed by each of Moody's, Standard and Poor's and Fitch, reflecting their confidence in the investment and in Rogers," said Anthony Staffieri, Chief Financial Officer, Rogers Communications. 

Rogers will invest $3.29 billion to acquire this valuable spectrum that will benefit customers in both rural and urban areas. Owning two blocks of contiguous paired spectrum across virtually all key geographic markets in Canada will allow Rogers to deploy 20MHz of spectrum, resulting in enhanced network coverage and a better mobile video experience. 

Acquiring spectrum in the lower band will provide additional benefits to customers. Since Rogers' existing LTE devices already operate in the lower 700MHz band, all Rogers customers with LTE devices will be able to benefit from our enhanced networks as soon as the new spectrum is deployed, which will begin rolling out in 2014.

The concurrent financings completed today consisted of US$750 million of 5.00% senior notes due 2044, $250 million of floating rate senior notes due 2017, $400 million of 2.80% senior notes due 2019, and $600 million of 4.00% senior notes due 2024.  As with all of our other US$ denominated debt, the principal and interest obligations on today's US$ denominated notes have been fully hedged against fluctuations in the Cdn$ foreign exchange rate for the entire term of the senior notes.

About the Company:
Rogers Communications is a diversified Canadian communications and media company. We are engaged in wireless voice and data communications services through Wireless, Canada's largest wireless provider. Through Cable, we are one of Canada's leading providers of cable television services as well as high-speed Internet access and telephony services to consumers and businesses. Through Media, we are engaged in radio and television broadcasting, televised shopping, sports entertainment, and magazines and trade publications. We are publicly traded on the Toronto Stock Exchange (TSX: RCI.A and RCI.B) and on the New YorkStock Exchange (NYSE: RCI). For further information about the Rogers group of companies, please visit www.rogers.com.

Caution Regarding Forward-Looking Statements, Risks and Assumptions.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction. Securities may not be offered or sold in the United States absent registration or an exemption for registration under U.S. securities laws.

This release includes "forward-looking information" within the meaning of applicable securities laws relating to assumptions concerning finalizing the acquisition and subsequent deployment of wireless spectrum as detailed above.  We caution that all forward-looking information is inherently subject to change and uncertainty and that actual results may differ materially from those expressed or implied by the forward-looking information. A number of risks, uncertainties and other factors could cause actual results and events to differ materially from those expressed or implied in the forward-looking information or could cause our current objectives, strategies and intentions to change, including but not limited to the post auction distribution of the spectrum by Industry Canada or unanticipated subsequent operational, technological or financial challenges associated with the deployment of such spectrum that could arise. Many of these factors are beyond our control and current expectation or knowledge. Should one or more of these risks, uncertainties or other factors materialize, our objectives, strategies or intentions change, or any other factors or assumptions underlying the forward-looking information prove incorrect, our actual results and our plans could vary significantly from what we currently foresee. Accordingly, we warn investors to exercise caution when considering statements containing forward-looking information and that it would be unreasonable to rely on such statements as creating legal rights regarding our future results or plans. We are under no obligation (and we expressly disclaim any such obligation) to update or alter any statements containing forward-looking information, the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law. All of the forward-looking information in this earnings release is qualified by the cautionary statements herein.

SOURCE Rogers Communications Inc.

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