By Cristal Cody
Tupelo, Miss., Sept. 14 – Harvest Operations Corp. sold $285 million of 3% five-year senior notes (Aa2/AA) in a Rule 144A and Regulation S offering on Thursday at a spread of 127.5 basis points over Treasuries, according to a market source and a company news release.
The notes priced on the tight side of talk in the 130 bps over Treasuries area.
HSBC Securities (Canada) Inc., CIBC World Markets Inc. and Citibank Global Markets Inc. were the bookrunners.
The notes will be unconditionally and irrevocably guaranteed by Harvest’s parent company, Korea National Oil Corp.
The company intends to list the notes on the Singapore Exchange Securities Trading Ltd.
Proceeds from the offering will be used to repay in full Harvest’s outstanding $282.5 million principal amount of 6 7/8% senior notes due Oct. 1, 2017.
Harvest Operations is a Calgary, Alta.-based energy industry operator and subsidiary of Korea National Oil.
| Issuer: | Harvest Operations Corp.
|
| Guarantor: | Korea National Oil Corp.
|
| Amount: | $285 million
|
| Description: | Senior notes
|
| Maturity: | Sept. 21, 2022
|
| Bookrunners: | HSBC Securities (Canada) Inc., CIBC World Markets Inc. and Citibank Global Markets Inc.
|
| Coupon: | 3%
|
| Spread: | Treasuries plus 127.5 bps
|
| Trade date: | Sept. 14
|
| Settlement date: | Sept. 21
|
| Ratings: | Moody’s: Aa2
|
| S&P: AA
|
| Distribution: | Rule 144A, Regulation S
|
| Price guidance: | Treasuries plus 130 bps area
|
© 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.
