By Andrea Heisinger and Christine Van Dusen
Atlanta, May 7 - Harvest Operations Corp. - part of Korea National Oil Corp. - priced $630 million 2.125% five-year notes (expected ratings: A1/A+/) at 99.637 to yield 2.202%, or Treasuries plus 145 basis points, a market source said.
The notes were talked at a spread in the 150 bps area.
BofA Merrill Lynch, Barclays, HSBC Securities (USA) Inc. and RBS Securities Inc. were the bookrunners for the Rule 144A and Regulation S deal.
The notes include a change-of-control put if the government ceases to own 51% of KNOC.
The proceeds will be used to repay Harvest's debt.
Harvest is a wholly owned subsidiary of Korea National Oil, an oil and gas production and exploration company based in Anyang, South Korea.
Harvest is an oil and natural gas company is based in Calgary, Alta.
| Issuer: | Harvest Operations Corp.
|
| Guarantor: | Korea National Oil Corp.
|
| Amount: | $630 million
|
| Maturity: | May 14, 2018
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Barclays, HSBC Securities (USA) Inc., RBS Securities Inc.
|
| Coupon: | 2.125%
|
| Price: | 99.637
|
| Yield: | 2.202%
|
| Spread: | Treasuries plus 145 bps
|
| Change-of-control put: | If the government ceases to own and control 51% of KNOC
|
| Distribution: | Rule 144A and Regulation S
|
| Trade date: | May 7
|
| Settlement date: | May 14
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A+
|
| Fitch: A+
|
| Price talk: | Treasuries plus 150 bps area
|
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