By Cristal Cody
Tupelo, Miss., April 16 - NAV Canada sold C$350 million in an offering of 1.949% five-year general obligation notes at par on Tuesday, according to an informed bond source.
The notes (Aa3//DBRS: AA) priced at a spread of 75 basis points over the Canada bond curve.
RBC Capital Markets was the lead manager.
NAV Canada said in a statement announcing the deal that - after issue costs and the settlement of a bond forward transaction that the company had entered into to hedge interest costs related to the issue - the effective interest rate to the company will be about 2.16%.
NAV Canada plans to use the proceeds to repay the C$250 million outstanding from series 2010-1 medium-term notes due April 29, 2013 and to finance the company's activities and investments, including required contributions to pension plans.
NAV Canada, based in Ottawa, is Canada's private sector civil air navigation services provider.
| Issuer: | NAV Canada
|
| Amount: | C$350 million
|
| Maturity: | April 19, 2018
|
| Securities: | General obligation notes
|
| Bookrunner: | RBC Capital Markets
|
| Coupon: | 1.949%
|
| Price: | Par
|
| Yield: | 1.949%
|
| Spread: | 75 bps over Canada bond curve
|
| Pricing date: | April 16
|
| Settlement date: | April 19
|
| Ratings: | Moody's: Aa3
|
| DBRS: AA
|
| Distribution: | Canada
|
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