Rogers Communications completed a $1.99 billion capital‑market transaction, issuing $750 million of U.S. dollar‑denominated subordinated notes and a Canadian private placement of Cdn$1.25 billion. The U.S. notes carry a 6.875% fixed‑to‑fixed rate and mature in 2056; the Canadian notes carry a 6.25% rate and also mature in 2056. Both issuances are expected to close on March 27, 2026.
Net proceeds are projected to be approximately US$740 million and Cdn$1.24 billion, which Rogers will use to repay outstanding debt. The move is part of a broader deleveraging strategy that began after the 2023 acquisition of Shaw Communications, which added significant long‑term debt. By reducing leverage, Rogers aims to lower its net debt/EBITDA ratio to 3.5× by April 2026 and preserve its investment‑grade credit rating.
The financing reflects the company’s focus on maintaining a low‑leverage profile while still supporting capital allocation priorities. Subordinated notes, while carrying higher interest costs than senior debt, provide flexibility and allow Rogers to tap both U.S. and Canadian investor bases. The higher coupon rates—6.875% for U.S. notes and 6.25% for Canadian notes—signal the market’s assessment of Rogers’ credit risk in a tightening interest‑rate environment.
Analysts have noted that Rogers’ debt‑reduction effort follows a pattern of disciplined balance‑sheet management. The company’s 2025 leverage ratio improved to 4.0 from 4.5, and the new issuance is expected to further strengthen the balance sheet. Management has emphasized confidence in the company’s core assets, stating that the capital‑market transaction supports long‑term financial flexibility.
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