By Angela McDaniels
Tacoma, Wash., May 24 - Enerplus Corp. released additional information about its roughly $405 million private placement of senior notes in the United States and Canada in a 6-K filing with the Securities and Exchange Commission on Thursday.
The notes were issued in three tranches:
• C$30 million of 4.34% notes, series A, due May 15, 2019;
• $20 million of 4.4% notes, series B, due May 15, 2022; and
• $355 million of 4.4% notes, series C, due May 15, 2024.
Each tranche priced at par.
The company must make annual amortization payments of $71 million each on the series C notes beginning May 15, 2020.
The notes have a make-whole call option at 50 basis points over Treasuries or the equivalent Government of Canada bond, as applicable.
Citigroup Global Markets Inc. was the placement agent.
The placement settled May 15. The proceeds were used to repay advances on the company's credit facility, according to a company news release.
Enerplus is an energy company based in Calgary, Alta.
| Issuer: | Enerplus Corp.
|
| Issue: | Senior notes
|
| Amount: | $375 million plus C$30 million
|
| Placement agent: | Citigroup Global Markets Inc.
|
| Settlement date: | May 15
|
| Distribution: | Private placement
|
|
|
| Series A notes
|
| Amount: | C$30 million
|
| Maturity: | May 15, 2019
|
| Coupon: | 4.34%
|
| Price: | Par
|
| Yield: | 4.34%
|
| Call option: | Make-whole at Government of Canada bond plus 50 bps
|
|
|
| Series B notes
|
| Amount: | $20 million
|
| Maturity: | May 15, 2022
|
| Coupon: | 4.4%
|
| Price: | Par
|
| Yield: | 4.4%
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
|
|
| Series C notes
|
| Amount: | $355 million
|
| Maturity: | May 15, 2024
|
| Coupon: | 4.4%
|
| Price: | Par
|
| Yield: | 4.4%
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Amortization: | Five annual payments of $71 million each beginning May 15, 2020
|
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