By Cristal Cody
Prospect News, June 21 - BAA Funding Ltd. sold an upsized C$400 million of 4% seven-year class A senior secured notes in Canada on Thursday at 99.367 to yield 4.105%, an informed bond source said.
The notes due July 3, 2019 (/A-/A-) priced at a spread of 264 basis points over the Government of Canada benchmark, compared to guidance of 265 bps over the Canadian government benchmark.
The deal was upsized from C$350 million and offered in a private placement in Canada and in the U.S. markets under Regulation S.
Bank of America Merrill Lynch, CIBC World Markets Inc. and RBC Capital Markets Corp. were the bookrunners. HSBC Capital (Canada) Inc. was a joint lead and passive bookrunner.
The holding company for London-based airport operator BAA Airports tapped the U.S. high-grade markets in a private sale on Monday for $500 million of 2.5% three-year senior secured notes (/A-/A-) priced at 99.928 to yield 2.525% with a spread of Treasuries plus 215 bps.
| Issuer: | BAA Funding Ltd.
|
| Amount: | C$400 million
|
| Maturity: | July 3, 2019
|
| Securities: | Senior secured notes
|
| Bookrunners: | Bank of America Merrill Lynch, CIBC World Markets Inc., RBC Capital Markets Corp. (active); HSBC Capital (Canada) Inc. (passive)
|
| Coupon: | 4%
|
| Price: | 99.367
|
| Yield: | 4.105%
|
| Spread: | 264 bps over Canadian government benchmark
|
| Call feature: | Not applicable
|
| Pricing date: | June 21
|
| Settlement date: | July 3
|
| Ratings: | Standard & Poor's: A-
|
| Fitch: A-
|
| Distribution: | Canada private placement, Regulation S
|
| Price talk: | 265 bps over Canadian government benchmark
|
| Marketing: | Roadshow
|
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