The Thomson Corporation has announced that it is redeeming approximately $400,000,000 of outstanding debt securities and offering $400 million of debentures due 2035.
The debentures will bear interest at an annual rate of 5.50% and the offering is expected to close on August 9, 2005, subject to customary closing conditions. Thomson intends to use the net proceeds of the offering to repay existing indebtedness and for general corporate purposes. Bear, Stearns & Co. Inc., Deutsche Bank Securities Inc. and UBS Securities LLC are the joint book-running managers for the offering.
Two separate series of securities will be redeemed, including a series of Canadian dollar-denominated medium term notes (MTNs) and a series of U.S. dollar-denominated notes. Thomson plans to finance the redemptions through debt financing, which may include new debt securities, the issuance of commercial paper, funds available under its revolving credit facilities and/or cash balances.