By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., March 28 – St. Mary’s Cement Inc. (Canada) priced $500 million of 5.75% sustainability notes due 2034 (Baa3/BBB) to yield 5.896% on Wednesday, according to a market source and a news release.
The notes priced with a spread of Treasuries plus 170 basis points after initial price talk in the Treasuries plus 200 bps area. Guidance was Treasuries plus 175 bps area, plus or minus 5 bps.
Banco Bradesco, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Itau BBA USA Securities Inc., MUFG Securities Americas Inc., Santander Investment Securities Inc. and UBS Securities LLC are the bookrunners.
The notes will have an environmental key performance indicator (KPI) related to Scope 1 net CO2 emissions intensity (in kg CO2/ton of cementitious product produced) and thermal substitution, in line with the implementation of the company’s sustainability goals to be achieved by 2030.
The company in a news release said it intends to use the net proceeds from the offering to settle the tender offer to repurchase any and all of the outstanding 2027 notes and for general corporate purposes.
St. Mary’s Cement is a Toronto supplier of cement, ready mix and aggregates and is a subsidiary of Brazil’s Votorantim Cimentos SA.
| Issuer: | St. Mary’s Cement Inc. (Canada)
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| Amount: | $500 million
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| Issue: | Sustainability notes
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| Maturity: | April 2, 2034
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| Bookrunners: | Banco Bradesco, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Itau BBA USA Securities Inc., MUFG Securities Americas Inc., Santander Investment Securities Inc. and UBS Securities LLC
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| Coupon: | 5.75%
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| Yield: | 5.896%
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| Spread: | Treasuries plus 170 bps
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| Pricing date: | March 27
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| Settlement date: | April 2
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| Ratings: | Moody’s: Baa3
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| S&P: BBB
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | Treasuries plus 200 bps area, guidance Treasuries plus 175 bps area, plus or minus 5 bps
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