Bell Aliant Completes Offering

On March 15, 2011, Bell Aliant Preferred Equity Inc., a subsidiary of Bell Aliant Inc., completed a public offering of 10,000,000 Cumulative 5-Year Rate Reset Series A Preferred Shares (“Series A Preferred Shares”) for gross proceeds of $250 million.

The offering was made on a bought deal basis through a syndicate of underwriters led by BMO Capital Markets and Scotia Capital Inc. and included CIBC World Markets Inc., RBC Dominion Securities Inc., TD Securities Inc., Desjardins Securities Inc. National Bank Financial Inc., Canaccord Genuity Corp., HSBC Securities (Canada) Inc., GMP Securities L.P. and Beacon Securities Limited.

On March 25, 2011, the underwriters exercised the over-allotment option for an additional 1,500,000 Series A Preferred Shares, bringing the total gross proceeds of the offering to $287.5-million. The Series A Preferred Shares are guaranteed by Bell Aliant Regional Communications Inc.

The net proceeds of the offering were used to make a lump-sum voluntary contribution to Bell Aliant Inc.'s pension plans and for other general corporate purposes.

Bell Aliant Preferred Equity was represented in-house by Frederick Crooks, QC, Paul Fitzpatrick, David Klassen and Clare Roughneen and by Blake, Cassels & Graydon LLP with a team that included Brendan Reay, John Wilkin, Eric Moncik, Catherine Youdan, Michael Smith and Paul Bent (corporate/securities) and Paul Tamaki, Kathleen Penny and Ilan Braude (tax).

BCE Inc. and Bell Canada were represented by in-house counsel Martin Cossette and by Stikeman Elliott LLP, with a team that included Simon Romano, Sean Vanderpol and Adeline Lee (corporate/securities).

The syndicate of underwriters was represented by Ogilvy Renault LLP, with a team that included Andrew Bleau, Elliot Shapiro and Catherine De Laboursodière (corporate/securities) and Derek Chiasson (tax).