By Cristal Cody
Prospect News, Dec. 20 - Equitable Group Inc. announced on Monday that it priced C$20 million of 6.092% series 9 fixed-to-floating-rate debentures.
The debentures priced at an initial spread of 350 basis points over the five-year Government of Canada benchmark bond.
The debentures have a 10-year term and will pay fixed interest monthly for the first five years and then switch to a floating interest rate equal to the 90-day CDOR plus 338 bps.
The proceeds from the sale will be used to purchase the company's subordinated debt, which qualifies as Tier 2B regulatory capital and will in turn be used to retire the series 6 6.92% debentures.
Equitable Group is a Toronto-based mortgage lender with a focus on service in Ontario, Alberta and Manitoba.
| Issuer: | Equitable Group Inc.
|
| Amount: | C$20 million
|
| Maturity: | 10 years
|
| Securities: | Fixed-to-floating-rate debentures
|
| Coupon: | 6.092% for first five years, then floating rate of 90-day CDOR plus 338 bps
|
| Spread: | 350 bps over Canadian five-year benchmark
|
| Pricing date: | Dec. 20
|
| Distribution: | Canada
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