(Bloomberg) -- BCE Inc., the Canadian telecommunications company that recently announced sweeping layoffs as part of a broader effort to boost income, raised $1.45 billion from the US bond market to refinance debt.
The firm sold senior unsecured notes in two parts, according to a person familiar with the matter. The longest-dated portion, $750 million of debt maturing in 30 years, yields 1.2 percentage point over Treasuries. Initial talk for pricing on that security was in the area of 1.4 percentage point.
The funds will go toward repaying notes due in March and paying for 3800 MHz spectrum licenses, said the person, asking not to be identified as the details are private.
A representative for BCE confirmed that the company is moving ahead with the debt issue, adding that it’s normal course intended for refinancing existing obligations.
The company, last week, announced it will cut jobs by about 9%, kicking off one of the largest rounds of layoffs in corporate Canada in recent years. It’s also reducing capital expenditures while slowing the build-out of its fiber-optic network, citing federal government policies aimed at creating more competition.
Canadian Prime Minister Justin Trudeau said BCE’s decision to cut jobs and programs in its media division is deeply frustrating to him at a time when the government is trying to help local journalism.
Read More: ‘Garbage Decision’: Trudeau Vents Over Sweeping BCE Job Cuts
Monday’s debt sale also included a $700 million note that matures in 10 years. The note priced at a yield of 1.05 percentage point over Treasuries.
BCE’s media division owns BNN Bloomberg Television, which is run in partnership with Bloomberg LP.
(Updates with pricing terms in the headline, first and second paragraph. Adds company’s comment in the fourth paragraph and Justin Trudeau’s reaction to previously announced job cuts in the sixth paragraph.)
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