Manitoba Telecom Services Completes $350M Offering of Medium Term Notes

On May 11, 2009, Manitoba Telecom Services Inc. (MTS) (TSX:MBT) issued $350 million of medium term notes comprised of $100 million of 5.05 per cent Medium Term Notes (Series 7) (the 5.05 per cent Notes) and $250 million of 6.65 per cent Medium Term Notes (Series 7) (the 6.65 per cent Notes) constituting unsecured indebtedness through its Medium Term Note Program. The net proceeds from the issuance of the 5.05 per cent Notes and the 6.65 per cent Notes (collectively, the Series 7 Notes) will be added to the general funds of MTS, and will be available for general corporate and working capital purposes, and financing investments and additions to property, plant and equipment.

The offering of the Series 7 Notes was made pursuant to its Short Form Base Shelf Prospectus dated January 18, 2008, a pricing supplement dated May 6, 2009 with respect to the 5.05 per cent Notes and a pricing supplement dated May 6, 2009 with respect to the 6.65 per cent Notes.

Both of the pricing supplements have been filed by MTS with the securities regulatory authorities in all provinces of Canada.

Scotia Capital Inc. led a syndicate of dealers comprised of RBC Dominion Securities Inc., BMO Nesbitt Burns Inc. and CIBC World Markets Inc. in completing the offering.

MTS was represented by its vice president and general counsel, Paul A. Beauregard, and Marilyn Clarke, senior legal counsel, with the assistance of a team from Fillmore Riley LLP that consisted of Lionel Martens (corporate) and Peter Davey and Wes Burrows (securities).
The dealers were advised by Richard L. Yaffe of Aikins, MacAulay & Thorvaldson LLP.