By Cristal Cody
Eureka Springs, Ark., May 24 – Gaz Metro inc. priced and closed on a C$100 million private placement offering of 1.52% four-year first mortgage bonds, according to a market source and a news release from Gaz Metro investment arm Valener Inc. on Tuesday.
The series S bonds (/A+/DBRS: A) are due May 25, 2020.
National Bank Financial Inc. and CIBC World Markets Inc. were the joint bookrunners.
The bonds are secured by a guarantee as to payment of principal and interest by Gaz Metro LP, together with collateral security backed by the assets of Gaz Metro inc. and Gaz Metro Partnership.
The company will lend the proceeds from the private placement to Gaz Metro on similar rate and maturity terms, and Gaz Metro plans to use the proceeds to repay existing debt and for general corporate purposes.
Valener is a Montreal-based investment vehicle in Gaz Metro and an investor in wind power production in Quebec.
Gas Metro inc. holds about 71% in Gaz Metro Partnership, for which it acts as the general partner and a financing vehicle.
Gaz Metro Partnership is a Montreal-based natural gas and energy company.
| Issuer: | Gaz Metro inc.
|
| Guarantor: | Gaz Metro LP and collateral security backed by assets of Gaz Metro inc. and Gaz Metro Partnership
|
| Amount: | C$100 million
|
| Maturity: | May 25, 2020
|
| Securities: | First mortgage bonds
|
| Bookrunners: | National Bank Financial Inc., CIBC World Markets Inc.
|
| Co-managers: | BMO Nesbitt Burns Inc., Desjardins Securities Inc., RBC Dominion Securities Inc., Scotia Capital Inc., TD Securities Inc., Laurentian Bank Securities Inc., Casgrain & Co. Ltd.
|
| Coupon: | 1.52%
|
| Pricing date: | May 17
|
| Settlement date: | May 24
|
| Ratings: | S&P: A+
|
| DBRS: A
|
| Distribution: | Canada private placement
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
