By Cristal Cody
Tupelo, Miss., June 12 – Keyera Corp. priced an upsized C$600 million of 60-year fixed-to-floating rate subordinated notes at par to yield 6 7/8% on Tuesday, according to additional details of the previously reported offering in final term sheets.
The hybrid notes due June 13, 2079 (BB+//DBRS: BB (high)) priced on the tight side of guidance in the 7% area, plus or minus 12.5 basis points.
The offering was upsized from C$400 million.
The issue will reset June 13, 2029 to a floating rate of the Bankers’ Acceptance rate plus 517 bps. The notes will reset again on June 13, 2049 at the Bankers’ Acceptance rate plus 592 bps.
CIBC World Markets Inc. and RBC Dominion Securities Inc. were the bookrunners.
Proceeds will be used to fund the company’s ongoing capital program, to repay debt under its revolving credit facility and for general corporate purposes.
Keyera is a Calgary, Alta.-based natural gas midstream provider.
| Issuer: | Keyera Corp.
|
| Amount: | C$600 million
|
| Description: | Series 2019A fixed-to-floating rate subordinated notes
|
| Maturity: | June 13, 2079
|
| Bookrunners: | CIBC World Markets Inc. and RBC Dominion Securities Inc.
|
| Co-managers: | National Bank Financial Inc., TD Securities Inc., BMO Nesbitt Burns Inc., Scotia Capital Inc., AltaCorp Capital Inc., Citigroup Global Markets Canada Inc., MUFG and Peters & Co. Ltd.
|
| Coupon: | 6 7/8%; resets June 13, 2029 to floating rate of Bankers’ Acceptance rate plus 517 bps; resets June 13, 2049 to Bankers’ Acceptance rate plus 592 bps
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| Call features: | On or after June 13, 2029 at par
|
| Trade date: | June 11
|
| Settlement date: | June 13
|
| Ratings: | S&P: BB+
|
| DBRS: BB (high)
|
| Distribution: | Canada
|
| Price guidance: | 7% area, plus or minus 12.5 bps
|
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