Aliant Telecom Establishes MTN Program

Aliant Telecom Inc. filed a short-form base shelf prospectus establishing a $350 million medium term note program on May 9, 2005. Under the program, Aliant Telecom may issue notes from time to time during the next 25 months.

On May 24, 2005, Aliant Telecom issued $150 million aggregate principal amount of seven-year fixed rate medium term notes, which will mature on May 24, 2012. The notes carry a coupon rate of 4.52 per cent and are callable at any time at the greater of par and the Canada Yield Price (the price required to provide a rate equivalent to Government of Canada bonds plus 0.16 per cent). Net proceeds resulting from the issuance of notes were added to the general funds of Aliant Telecom and will be available for general corporate and working capital purposes, to finance acquisitions and to finance additions to property, plant and equipment or for the retirement of debt (which debt was incurred by Aliant Telecom for similar purposes).

Aliant Telecom was represented by Blake, Cassels & Graydon LLP with a team comprised of Sheila Murray, Anoop Dogra, Cathy Stephen and Jennifer Maxwell (securities/corporate), Paul Tamaki (tax) and Hélène Barette (translation matters). The Blakes team worked under the guidance of Reid Parker, vice-president and treasurer; Eleanor Marshall, director of corporate finance; and Paul Fitzpatrick, senior counsel, Aliant Telecom.

Torys LLP acted for the dealers, RBC Capital Markets, Scotia Capital Inc., CIBC World Markets Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc. and TD Securities Inc. The Torys team included Brian Davis and Boris Nevelev (securities/corporate), Jim Welkoff (tax) and Daniel Miller (US securities).