Published on 11/7/2012 in the Prospect News Canadian Bonds Daily and Prospect News High Yield Daily.
New Issue: Canada's Mattamy prices upsized $500 million equivalent dual-currency note issue
By Paul A. Harris
Portland, Ore., Nov. 7 - Mattamy Group Corp. priced an upsized $500 million equivalent amount of eight-year senior notes (B1/BB/) on Wednesday, according to a syndicate source.
The deal included a US$300 million tranche of notes, which priced at par to yield 6½%, on top of yield talk.
Mattamy also priced a C$200 million tranche of notes, which priced at par to yield 6 7/8%. The Canadian dollar-denominated notes also priced on top of talk, which had them yielding 37.5 basis points more than the U.S. dollar-denominated notes.
The deal was upsized from US$450 million equivalent.
Joint global coordinators Credit Suisse Securities (Canada) Inc. and RBC Dominion Securities Inc. were joint bookrunners. Citigroup Global Markets Canada Inc. was also a joint bookrunner.
The Burlington, Ont.-based residential homebuilder plans to use the proceeds to refinance existing debt.
| Issuer: | Mattamy Group Corp.
|
| Amount: | $500 million equivalent, increased from $450 million equivalent
|
| Maturity: | Nov. 15, 2020
|
| Securities: | Senior notes
|
| Global coordinators/bookrunners: | Credit Suisse Securities (Canada) Inc., RBC Dominion Securities Inc.
|
| Joint bookrunner: | Citigroup Global Markets Canada Inc.
|
| Co-managers: | CIBC World Markets Inc., Scotia Capital Inc., TD Securities Inc.
|
| Trade date: | Nov. 7
|
| Settlement: | Nov. 15
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| U.S. dollar-denominated notes
|
| Amount: | $300 million
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 524 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Nov. 15, 2015, then callable at 104.875, 103.25, 101.625, par on and after Nov. 15, 2018
|
| Equity clawback: | 35% at 106.5 until Nov. 15, 2015
|
| Price talk: | 6½% area
|
|
|
| Canadian dollar-denominated notes
|
| Amount: | C$200 million
|
| Coupon: | 6 7/8%
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| Spread: | 534 bps
|
| Call features: | Make-whole call at governments plus 50 bps until Nov. 15, 2015, then callable at 105.156, 103.438, 101.719, par on and after Nov. 15, 2018
|
| Equity clawback: | 35% at 106.875 until Nov. 15, 2015
|
| Price talk: | 37.5 bps behind the dollar-denominated notes
|
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