By Paul A. Harris
St. Louis, June 25 - OPTI Canada Inc. priced a $750 million issue of 7.5-year senior secured second-lien notes (B1/BB+) at par to yield 7 7/8% on Monday, according to market sources.
The yield was printed at the wide end of the 7¾% to 7 7/8% price talk.
Credit Suisse ran the books for the quick-to-market Rule 144A transaction. RBC Capital Markets and TD Securities were the co-managers.
Proceeds will be used to retire OPTI's existing $450 million term loan B, to fund a portion of phase one of the Long Lake Project and to fund upfront development costs for phase two.
OPTI is an Alberta-based company focused on developing the fourth and next major integrated oil sands project in Canada, the Long Lake Project, in a 50/50 joint venture with Nexen Inc.
| Issuer: | OPTI Canada Inc.
|
| Amount: | $750 million
|
| Maturity: | Dec. 15, 2014
|
| Security description: | Senior secured second-lien notes
|
| Bookrunner: | Credit Suisse
|
| Co-managers: | RBC Capital Markets, TD Securities
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| Spread: | 283 bps
|
| Call features: | Callable Dec. 15, 2010 at 104.125, 102.063, par on and after Dec. 15, 2012
|
| Equity clawback: | Until Dec. 15, 2009 for 35% at 108.25
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB+
|
| Distribution: | Rule 144A
|
| Price talk: | 7¾% to 7 7/8%
|
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