By Cristal Cody
Prospect News, Nov. 8 - Newalta Corp. priced C$125 million 7¾% eight-year senior debentures (B1///DBRS: BB) at par on Tuesday, a bond source said.
The series 2 debentures due Nov. 14, 2019 priced at a spread of 578.2 basis points over the Canadian bond curve.
CIBC World Markets Inc. was the bookrunner. Co-managers were RBC Capital Markets Corp., Scotia Capital Inc., National Bank Financial and TD Securities Inc.
Newalta last sold debt a year ago on Nov. 18. The company priced C$125 million 7 5/8% senior notes (B1/BB/) due Nov. 23, 2017 at par, or a spread of 496.9 bps versus the Government of Canada benchmark bond.
Proceeds will be used to redeem Newalta's outstanding 7% convertible subordinated debentures and for general corporate purposes.
Newalta is a Calgary, Alta.-based industrial waste management and environmental services company.
| Issuer: | Newalta Corp.
|
| Amount: | C$125 million
|
| Maturity: | Nov. 14, 2019
|
| Securities: | Senior debentures
|
| Bookrunner: | CIBC World Markets Inc.
|
| Co-managers: | RBC Capital Markets Corp., Scotia Capital Inc., National Bank Financial, TD Securities Inc.
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 578.2 bps over bond curve
|
| Call feature: | Non-callable for four years
|
| Change-of-control put: | 101%
|
| Pricing date: | Nov. 8
|
| Settlement date: | Nov. 14
|
| Ratings: | Moody's: B1
|
| DBRS: BB
|
| Distribution: | Canada
|
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