By Cristal Cody
Tupelo, Miss., June 23 – Gibson Energy Inc. provided additional details of its upsized C$650 million two-part offering on Monday of senior medium-term notes (BBB-//DBRS: BBB) in final term sheets.
The company priced C$325 million of 2.45% five-year notes at 99.804 to yield 2.492%.
The tranche was upsized from C$250 million.
A C$325 million offering of 2.85% seven-year notes priced at 99.975 to yield 2.854%.
The issue was upsized from C$250 million.
CIBC World Markets Inc., RBC Dominion Securities Inc., BMO Nesbitt Burns Inc. and Scotia Capital Inc. were the bookrunners.
The Calgary, Alta.-based midstream energy company plans to use the proceeds to redeem its outstanding C$600 million 5.25% senior notes due July 15, 2024, to repay revolving credit facility borrowings and for general corporate purposes.
| Issuer: | Gibson Energy Inc.
|
| Amount: | C$650 million
|
| Description: | Senior medium-term notes
|
| Bookrunners: | CIBC World Markets Inc., RBC Dominion Securities Inc., BMO Nesbitt Burns Inc. and Scotia Capital Inc.
|
| Co-managers: | National Bank Financial Inc., TD Securities Inc., AltaCorp Capital Inc., Merrill Lynch Canada Inc., J.P. Morgan Securities Canada Inc. and Peters & Co. Ltd.
|
| Trade date: | June 22
|
| Settlement date: | July 14
|
| Ratings: | S&P: BBB-
|
| DBRS: BBB
|
| Distribution: | Canada
|
|
|
| Five-year notes
|
| Amount: | C$325 million
|
| Maturity: | July 14, 2025
|
| Coupon: | 2.45%
|
| Price: | 99.804
|
| Yield: | 2.492%
|
| Call features: | Make-whole call before June 14, 2025 at price equal to greater of par and Government of Canada yield plus 52.5 bps; thereafter at par
|
| Change-of-control put: | 101%
|
|
|
| Seven-year notes
|
| Amount: | C$325 million
|
| Maturity: | July 14, 2027
|
| Coupon: | 2.85%
|
| Price: | 99.975
|
| Yield: | 2.854%
|
| Call features: | Make-whole call before May 14, 2027 at price equal to greater of par and Government of Canada yield plus 60 bps; thereafter at par
|
| Change-of-control put: | 101%
|
|
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