Rogers Communications is raising $1.1 billion to pay for its 37.5% stake in Maple Leaf Sports and Entertainment, via a two-tranche bond offering.

The debt financing comprises $500 million of 3% senior notes, due 2017, and another $600 million of 4% senior notes, due 2022.

Rogers and BCE in December 2011 unveiled a deal to jointly acquire a 75% stake in Maple Leaf Sports and Entertainment, which will add a raft of pro sport teams, including the Toronto Maple Leafs and Toronto Raptors, to their specialty TV sport assets.

Rogers and BCE bought a combined 79.5% stake in MLSE for $1.32 billion, before minority stakeholder Larry Tanenbaum raised his stake to 25% by purchasing a 4.5% stake from the Rogers-BCE consortium.

Rogers said it expects to net proceeds from the offering of around $1.09 billion, to be used to repay outstanding advances under a bank credit facility and for general corporate purposes.

The cable and mobile phone giant also expects the deal to acquire Maple Leaf Sports and Entertainment will close on or around June 4, 2012.

From Playback Daily