By Cristal Cody
Tupelo, Miss., Dec. 10 - Muskrat Falls/Labrador Transmission Asset Funding Trust priced $2.6 billion of guaranteed senior bonds (Aaa/AAA/DBRS: AAA) in a Rule 144A-eligible three-part deal on Tuesday, according to an informed source.
The trust priced C$650 million of 3.63% series A bonds due June 1, 2029 at 101.699 to yield 3.487%, or a spread of 50 basis points over the Government of Canada benchmark.
In the second tranche, the trust sold C$675 million of 3.83% series B bonds due June 1, 2037 at 102.044 to yield 3.699%. The bonds priced with a spread of 52 bps over the Government of Canada benchmark.
Muskrat Falls/Labrador Transmission Asset Funding Trust priced C$1,275,000,000 of series C bonds due Dec. 1, 2048 at 102.154 to yield 3.749% in the final tranche. The long bonds priced with a spread of 53 bps over the government benchmark.
TD Securities Inc. was the bookrunner. Joint lead managers were Goldman Sachs & Co., BMO Capital Markets Corp., CIBC World Markets Inc., RBC Dominion Securities Inc. and Scotia Capital Inc.
The Government of Canada is the guarantor.
The bonds are redeemable at any time at the greater of par and the Canada Yield Price.
The trust plans to use the proceeds for the Lower Churchill Project, an 824-megawatt hydroelectric power generating and transmission project that was developed by Nalcor Energy, a corporation owned by the Province of Newfoundland and Labrador.
| Issuer: | Muskrat Falls/Labrador Transmission Asset Funding Trust
|
| Guarantor: | Government of Canada
|
| Amount: | C$2.6 billion
|
| Securities: | Guaranteed senior bonds
|
| Bookrunners: | TD Securities Inc. (sole); Goldman Sachs & Co., BMO Capital Markets Corp., CIBC World Markets Inc., RBC Dominion Securities Inc., Scotia Capital Inc. (co-lead)
|
| Co-managers: | Desjardins Securities Inc., National Bank Financial Inc., Casgrain & Co. Ltd., HSBC Capital (Canada) Inc., Laurentian Bank Securities, Inc., Bank of America Merrill Lynch
|
| Call feature: | Any time at the greater of par and the Canada Yield Price
|
| Pricing date: | Dec. 10
|
| Settlement date: | Dec. 13
|
| Ratings: | Moody's: Aaa
|
| Standard & Poor's: AAA
|
| DBRS: AAA
|
| Distribution: | Canada, Rule 144A
|
|
|
| Series A bonds
|
| Amount: | C$650 million
|
| Maturity: | June 1, 2029
|
| Coupon: | 3.63%
|
| Price: | 101.699
|
| Yield: | 3.487%
|
| Spread: | 50 bps over Government of Canada benchmark
|
|
|
| Series B bonds
|
| Amount: | C$675 million
|
| Maturity: | June 1, 2037
|
| Coupon: | 3.83%
|
| Price: | 102.044
|
| Yield: | 3.699%
|
| Spread: | 52 bps over Government of Canada benchmark
|
|
|
| Series C bonds
|
| Amount: | C$1,275,000,000
|
| Maturity: | Dec. 1, 2048
|
| Coupon: | 3.86%
|
| Price: | 102.154
|
| Yield: | 3.749%
|
| Spread: | 53 bps over Government of Canada benchmark
|
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