Published on 3/8/2017 in the Prospect News Canadian Bonds Daily and Prospect News High Yield Daily.
New Issue: Gibson Energy prices upsized C$350 million 5¼% notes due 2024 at par to yield 5.251%
By Paul A. Harris
Portland, Ore., March 8 – Gibson Energy Inc. priced an upsized C$350 million issue of 5¼% senior notes due July 15, 2024 (Ba2/BB) at par to yield 5.251% on Wednesday, according to market sources.
The issue size was increased from C$300 million.
The yield printed at the wide end of the 5 1/8% to 5¼% yield talk.
RBC Capital Markets and BMO Securities were the joint bookrunners and joint global coordinators. Scotia Capital Inc. was also a joint bookrunner.
The Calgary, Alta.-based midstream energy company plans to use the proceeds to repurchase its existing C$250 million of senior notes due 2020 and partially redeem its $550 million of senior notes due 2021.
| Issuer: | Gibson Energy Inc.
|
| Amount: | C$350 million, upsized from C$300 million
|
| Maturity: | July 15, 2024
|
| Securities: | Senior notes
|
| Global coordinators: | RBC Capital Markets, BMO Securities
|
| Joint bookrunners: | RBC, BMO, SCI
|
| Co-managers: | TD Securities, NBF, HSBC, Alta Corp., JPMorgan and BofA Merrill Lynch
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5.251%
|
| Spread: | 370 bps
|
| Call: | Make-whole call until March 22, 2020, then callable at 103.938
|
| Equity clawback: | 35% at 105.25 for the first three years
|
| Trade date: | March 8
|
| Settlement date: | March 22
|
| Ratings: | Moody's: Ba2
|
| S&P: BB
|
| Distribution: | Rule 144A, private placement in Canada
|
| Price talk: | 5 1/8% to 5¼%
|
| Marketing: | Quick to market
|
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