By Cristal Cody
Prospect News, April 20 - Enersource Corp. (A//DBRS: A) sold C$320 million in two tranches of 10-year and 30-year senior debentures on Wednesday, an informed source connected to the sale said.
In the first tranche, the company priced C$110 million of 4.521% notes due April 29, 2021 at par, or a spread of 109.4 basis points over the Government of Canada benchmark, compared to guidance of 112 bps over the benchmark. The notes have a Canada call at a 27.5 bps spread.
The company also sold C$210 million 5.297% notes due April 29, 2041 at par, or a spread of 152.1 bps over the Government of Canada benchmark, compared to price talk of 155 bps. The bonds have a Canada call with a 38 bps spread.
CIBC World Markets Inc. was the lead manager and Scotia Capital Inc. was the co-lead manager.
Co-managers were BMO Capital Markets Corp., RBC Capital Markets Corp. and TD Securities Inc.
Proceeds will be used to repay C$290 million of the Borealis Infrastructure Trust 6.27% bonds due May 3, 2011 and for general corporate purposes.
The electric utility is 90% owned by the City of Mississauga, Ont., and 10% by BPC Energy Corp., which is part of the Ontario Municipal Employees Retirement System.
| Issuer: | Enersource Corp.
|
| Amount: | C$320 million
|
| Securities: | Debentures
|
| Lead managers: | CIBC World Markets Inc., Scotia Capital Inc.
|
| Co-managers: | BMO Capital Markets Corp., RBC Capital Markets Corp., TD Securities Inc.
|
| Pricing date: | April 20
|
| Settlement date: | April 29
|
| Ratings: | Standard & Poor's: A
|
| DBRS: A
|
| Distribution: | Canada
|
|
|
| 10-year debentures
|
| Amount: | C$110 million
|
| Maturity: | April 29, 2021
|
| Coupon: | 4.521%
|
| Price: | Par
|
| Yield: | 4.521%
|
| Spread: | 109.4 bps over Government of Canada benchmark
|
| Call feature: | 27.5 bps Canada call
|
| Price talk: | 112 bps over Government of Canada benchmark
|
|
|
| 30-year debentures
|
| Amount: | C$210 million
|
| Maturity: | April 29, 2041
|
| Coupon: | 5.297%
|
| Price: | Par
|
| Yield: | 5.297%
|
| Spread: | 152.1 bps over Government of Canada benchmark
|
| Call feature: | 38 bps Canada call
|
| Price talk: | 155 bps over the Government of Canada benchmark
|
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