D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat
TORONTO - Rogers Communications Inc. (TSX: RCI.A and RCI.B; NYSE: RCI), a $14.35 billion telecommunications giant currently trading at $26.07, has initiated consent solicitations to amend indentures for its various series of notes, in connection with a subsidiary equity investment by Rogers and Blackstone. According to InvestingPro analysis, the company appears undervalued at current levels. The company plans to use the majority of the investment proceeds to repay debt, expecting the transaction to be treated as equity by major rating agencies. This move comes as Rogers manages a substantial debt load of $33.71 billion, with a debt-to-equity ratio of 4.66.
The amendments aim to ensure clarity that this investment does not fall under debt limitations in the indentures of Rogers’ notes. The consent process, which began on Monday, is open to note holders as of 5:00 p.m. on April 3, 2025, and will conclude at 5:00 p.m. on April 15, 2025. Eligible consenting note holders may receive a fee, contingent on meeting certain conditions, including the completion of the equity investment for series other than those issued by Shaw Communications Inc.
Rogers has emphasized that the consent solicitations are being made solely based on the terms set in the applicable statements and not as an offer to buy securities. The full details and procedures for consenting to the proposed amendments are outlined in the consent solicitation statements made available by the company. This news is based on a press release statement. InvestingPro’s comprehensive analysis shows the company maintains a FAIR financial health score, with detailed metrics and additional insights available in the Pro Research Report.
In other recent news, Rogers Communications has reported its fiscal year-end results for the period ending December 31, 2024. The company filed this report with the U.S. Securities and Exchange Commission, although specific financial details were not disclosed in the announcement. This filing continues Rogers Communications’ compliance with regulatory obligations as a foreign private issuer. Additionally, BofA Securities has downgraded Rogers Communications’ stock rating from Buy to Neutral, citing concerns over slowing margins and the company’s exposure to potential government policy changes regarding immigration. The downgrade also reflects uncertainties tied to Rogers’ investments in sports assets and the company’s higher-than-anticipated leverage. BofA Securities has adjusted the stock’s price target from C$65 to C$55, translating to a reduction from US$50 to US$39. These developments highlight the challenges Rogers Communications faces in maintaining growth amid a competitive telecommunications landscape. Investors are likely to scrutinize the company’s strategic direction and financial stability in light of these updates.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.