06:44 AM EDT, 05/22/2024 (MT Newswires) -- Bell Canada, a unit of Canadian communications company BCE (BCE.TO), overnight Tuesday said that it will raise $1.5 billion via a public offering of MTN debentures in two series under its medium-term notes program.

The $400 million 5.60% MTN debentures, Series M-61, which are being issued under a re-opening of an existing series of MTN debentures, will be dated May 24, 2024, will mature on Aug. 11, 2053, and will be issued at $101.936 per $100 principal amount plus accrued and unpaid interest from and including Feb. 11, 2024 to, but excluding, May 24, 2024 for $1.58027397 per $100 principal amount to yield 5.465%.

The $1.1 billion 5.15% MTN debentures, Series M-63, will be dated May 24, 2024, will mature on Aug. 24, 2034, and will be issued at $99.646 per $100 principal amount for a yield to maturity of 5.196%.

Bell Canada plans to use the net proceeds to fund the repayment of Bell Canada MTN debenture debt maturing in the first quarter of 2025 and for general corporate purposes.

The MTN debentures will be fully and unconditionally guaranteed by BCE. The offering is expected to close on May 24.

On Tuesday, BCE shares slipped 0.7% in US trading and 1.2% in Canada.