The $34.8-billion buyout of BCE Inc. has become more questionable as the banks funding the deal have sought to renegotiate the financing terms, a source familiar with the situation said yesterday.
The banks behind the buyout of BCE, Canada’s largest telecommunications company and operator of Bell Canada, submitted new financing terms to the buyout group Friday, the source said.
The new set of terms contained higher interest rates and other “onerous” conditions, the source said.
The New York Times said the new terms submitted by the banks included higher interest rates, tighter loan restrictions and protections that far exceeded the original terms. The buyout group and the banks negotiated all weekend, according to the report.