By Cristal Cody
Prospect News, Dec. 8 - Eagle Credit Card Trust priced an upsized C$558 million in two tranches of credit card receivables-backed notes (DBRS: AAA) on Wednesday, an informed source said.
The company sold an upsized C$232.5 million of 2.782% series 2010-1 senior notes due Dec. 17, 2013 at par.
The notes, upsized from C$200 million, priced at a spread of 85.1 basis points over the Government of Canada benchmark bond. The deal was talked at 78 bps over the Government of Canada benchmark.
In the second tranche, Eagle Credit Card Trust sold an upsized C$325.5 million of 3.474% notes due Dec. 17, 2015 at par, or a spread of 98.2 bps over the Canadian government benchmark. The offering was upsized from C$300 million. The notes were talked at 98 bps spread.
CIBC World Markets Inc. and RBC Dominion Securities Inc. were the bookrunners.
BMO Capital Markets Corp., TD Securities Inc., Scotia Capital Inc. and National Bank Financial Inc. were the co-managers.
Proceeds will be used to finance the purchase of undivided co-ownership interests in the receivables of credit card accounts designated by President's Choice Bank.
Toronto-based Eagle Credit Card Trust manages the credit card receivables from PC Bank, a subsidiary of Loblaw Cos.
| Issuer: | Eagle Credit Card Trust
|
| Amount: | C$558 million
|
| Securities: | Credit card receivables-backed notes
|
| Bookrunners: | CIBC World Markets Inc., RBC Dominion Securities Inc.
|
| Co-managers: | BMO Capital Markets Corp., TD Securities Inc., Scotia Capital Inc., National Bank Financial Inc.
|
| Pricing date: | Dec. 8
|
| Settlement date: | Dec. 15
|
| Rating: | DBRS: AAA
|
| Distribution: | Canada
|
|
|
| Notes due 2013
|
| Amount: | C$232.5 million
|
| Maturity: | Dec. 17, 2013
|
| Coupon: | 2.782%
|
| Price: | Par
|
| Yield: | 2.782%
|
| Spread: | 85.1 bps over Canadian government benchmark
|
| Price talk: | 78 over Canadian government benchmark
|
|
|
| Notes due 2015
|
| Amount: | C$325.5 million
|
| Maturity: | Dec. 17, 2015
|
| Coupon: | 3.474%
|
| Price: | Par
|
| Yield: | 3.474%
|
| Spread: | 98.2 bps over Canadian government benchmark
|
| Price talk: | 98 bps over Canadian government benchmark
|
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