#Canada #Montreal #Bell Canada #BCE Inc. #Ziply Fiber

Bell Canada Completes Redemption of Ziply Fiber's Debt

On August 28, 2025, Bell Canada, one of the leading communication companies in North America, announced a major financial milestone: the redemption of all outstanding debt securities belonging to Ziply Fiber, a prominent fiber internet provider in the Pacific Northwest. This strategic move involved a total redemption amount of approximately $1.96 billion USD (CAD $2.7 billion).

The outstanding debt securities were composed of two main components:

• - Secured Fiber Network Revenue Term Notes valued at approximately $1.594 billion USD (CAD $2.192 billion).
• - Secured Fiber Network Revenue Funding Notes totaling about $367 million USD (CAD $509 million).

The redemption of the Term Notes occurred on the date of the announcement, with a total redemption price of around $1.675 billion USD (CAD $2.304 billion). This amount included not just the principal owed but also all accrued and unpaid interest, in addition to a prepayment consideration. Furthermore, the Funding Notes were settled on August 20, 2025, with a principal amount of $367 million USD (CAD $509 million) fully repaid.

Bell Canada financed the redemption process in part through its recent issuance of $2.0 billion in Canadian dollars in medium-term notes (MTN), which is aligned with its broader strategy to strengthen its financial performance and operational stability.

The Strategic Approach by Bell Canada

This action is a significant part of Bell Canada’s financial strategy following its acquisition of Ziply Fiber on August 1, 2025, where the integration of assets aimed to enhance Bell’s service offerings in the fiber market. Ziply Fiber's reputation as a leading provider of high-speed internet has positioned it as a strong asset for Bell in the highly competitive telecommunications landscape.

The Impact of the Debt Redemption

With this redemption, Bell Canada not only alleviates its debt obligations but also improves its cash flow position, allowing for more strategic investments in infrastructure, network expansion, and innovative technologies. This is crucial as the demand for high-speed internet continues to surge across Canada and beyond, particularly with the increasing need for reliable connectivity in both personal and professional realms.

Additionally, this transaction underscores Bell's commitment to maintaining a robust balance sheet and fostering a sustainable growth trajectory. By managing its financial obligations effectively, Bell is poised to invest in future technologies and better serve its customers.

About Bell Canada

Founded in 1880 and headquartered in Montréal, Bell Canada is recognized as Canada's largest communications company, providing a diverse range of services including advanced broadband internet, wireless connectivity, TV solutions, and a variety of media and business communication services. Bell’s integrated and customer-focused operations ensure that they remain at the forefront of the telecommunications industry.

Through initiatives like Bell for Better, the company is dedicated to contributing positively to the social and economic well-being of communities across Canada. Programs such as Bell Let's Talk focus on raising awareness and reducing the stigma surrounding mental health, reflecting a commitment to corporate responsibility and community support.

For more information, please visit Bell.ca or BCE.ca.

In summary, Bell Canada’s strategic redemption of Ziply Fiber's debt mirrors the company’s ongoing commitment to optimizing its financial operations while enhancing service offerings in a rapidly evolving market.