By Paul A. Harris
St. Louis, Dec. 8 - OPTI Canada Inc. priced a $1 billion issue of eight-year senior secured notes (B1/BB) at par to yield 8¼% on Friday, according to market sources.
The deal, which was reported to have been massively oversubscribed, came at the tight end of the 8¼% to 8½% price talk.
The Rule 144A with registration rights deal was led by joint bookrunners Credit Suisse and RBC Capital Markets.
TD Securities was a joint lead manager.
The Royal Bank of Scotland, Scotia Capital, BNP Paribas and Societe Generale Corporate & Investment Banking are co-mangers.
The notes come with second-lien security and four years of call protection.
Proceeds will be used to refinance the Calgary, Alta., developer's existing project facility as well as to fund expenditures and complete phase one of the Long Lake project.
OPTI Canada is engaged in the development of the Long Lake oil sands project in Canada, a 50-50 joint venture with Nexen Inc.
| Issuer: | OPTI Canada Inc.
|
| Amount: | $1 billion
|
| Maturity: | Dec. 15, 2014
|
| Security description: | Senior secured notes
|
| Bookrunners: | Credit Suisse, RBC Capital Markets
|
| Joint lead manager: | TD Securities
|
| Co-managers: | The Royal Bank of Scotland, Scotia Capital, BNP Paribas, Societe Generale Corporate & Investment Banking
|
| Coupon: | 8¼%
|
| Price: | Par
|
| Yield: | 8¼%
|
| Spread: | 374 bps
|
| Call features: | Callable on Dec. 15, 2010 at 104.125, 210.063, par on and after Dec. 15, 2012
|
| Equity clawback: | Until Dec. 15, 2009 for 35% at 108.25
|
| Trade date: | Dec. 8
|
| Settlement date: | Dec. 15
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
| Price talk: | 8¼% to 8½%
|
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