Published on 3/5/2024 in the Prospect News Canadian Bonds Daily and Prospect News Investment Grade Daily.
New Issue: Magna sells $400 million of 5.05% five-year notes at 95 bps spread
By Wendy Van Sickle
Columbus, Ohio, March 5 – Magna International Inc. priced $400 million of 5.05% five-year senior notes (A3/A-) on Tuesday at 99.852 to yield 5.084%, or 95 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
BNP Paribas Securities Corp., BofA Securities, Inc., Citigroup Global Markets Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC were the bookrunners.
Proceeds will be used for general corporate purposes, which may include the repayment of existing debt.
The company noted in a filing earlier in that day that it would also be running a concurrent offering of Canadian dollar-denominated notes.
The Aurora, Ont.-based company is a mobility technology company and a supplier in the automotive space.
| Issuer: | Magna International Inc.
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| Amount: | $400 million
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| Issue: | Senior notes
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| Maturity: | March 14, 2029
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| Bookrunners: | BNP Paribas Securities Corp., BofA Securities, Inc., Citigroup Global Markets Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC
|
| Co-managers: | CIBC World Markets Corp., Commerz Markets LLC, Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., ICBC Standard Bank plc, ING Financial Markets LLC, J.P. Morgan Securities LLC, Loop Capital Markets LLC, RB International Markets (USA) LLC and Wells Fargo Securities, LLC
|
| Trustee: | Bank of New York Mellon
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| Counsel to issuer: | Osler, Hoskin & Harcourt LLP and Sidley Austin LLP
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| Counsel to underwriters: | Shearman & Sterling LLP
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| Coupon: | 5.05%
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| Price: | 99.852
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| Yield: | 5.084%
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| Spread: | Treasuries plus 95 bps
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| Call feature: | Make-whole call before Feb. 14, 2029 at Treasuries plus 15 bps; thereafter at par
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| Trade date: | March 5
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| Settlement date: | March 14
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| Ratings: | Moody’s: A3
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| S&P: A-
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| Distribution: | SEC registered
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| Cusip: | 559222BA1
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