BCE bond terms released, assuming buyout proceeds

NEW YORK, Dec 10 (Reuters) - Terms came out on Wednesday on a $9 billion bond sale that BCE Inc (BCE.TO) (BCE.N) will make on Thursday to repay a bridge loan used to fund its buyout, assuming that the deal closes, said IFR.

The buyout of Canada's biggest phone company may not be completed, following BCE's announcement in late November that its accountants, KPMG, had found the company would fail such a solvency test because of the huge debt load related to the C$34.8 billion ($27.8 billion) deal.

A positive opinion from KPMG is a condition to the deal's closing, which is slated for Thursday. Without it, BCE has said the transaction is unlikely to proceed.

If the deal does proceed, the company is expected to sell $4.38 billion in senior notes due 2016, which will pay an initial coupon of 6.349 percent, which will increase to 11.25 percent by maturity, said IFR, a Thomson Reuters service.

The company will also sell $3.01 billion in senior subordinated notes due 2018, with an initial coupon of 7.721 percent, which steps up to a 12.75 percent coupon at maturity, IFR said.

Another $1.59 billion in senior pay-in-kind toggle notes due 2016 will also be planned, paying an initial coupon of 6.849 percent, which increases to 11.75 percent by its maturity, IFR said. (Reporting by Karen Brettell; Editing by Leslie Adler)