By Cristal Cody
Prospect News, Feb. 13 - PSP Capital Inc. raised C$1.25 billion in two tranches of medium-term notes (DBRS: AAA) on Monday, a syndicate source said.
The guaranteed financing subsidiary of Public Sector Pension Investment Board sold C$350 million of three-year floating-rate notes at par to yield 39 basis points over the Canadian Dealer Offered Rate.
In the second tranche, PSP priced C$900 million of 2.26% five-year fixed-rate notes at 99.972 to yield 2.266%, or a spread of 84 bps over the Government of Canada benchmark.
TD Securities Inc. and RBC Capital Markets Corp. were the lead managers.
Proceeds will be used to repay about $700 million of outstanding commercial paper and to finance additional investment activities.
Ottawa-based Public Sector Pension Investment Board invests funds for the pension plans of the federal Public Service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force.
PSP Capital was last in the market on Nov. 30, 2010 with the sale of C$700 million of 2.94% five-year notes to yield 2.949%, or a spread of 62.1 bps over the government benchmark.
| Issuer: | PSP Capital Inc.
|
| Guarantor: | Public Sector Pension Investment Board
|
| Amount: | C$1.25 billion
|
| Securities: | Medium-term notes
|
| Bookrunners: | TD Securities Inc., RBC Capital Markets Corp.
|
| Pricing date: | Feb. 13
|
| Settlement date: | Feb. 16
|
| Rating: | DBRS: AAA
|
| Distribution: | Canada
|
|
|
| Notes due 2015
|
| Amount: | C$350 million
|
| Maturity: | Feb. 16, 2015
|
| Securities: | Floating-rate notes
|
| Coupon: | CDOR plus 39 bps
|
| Price: | Par
|
| Yield: | CDOR plus 39 bps
|
|
|
| Notes due 2017
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| Amount: | C$900 million
|
| Maturity: | Feb. 16, 2017
|
| Securities: | Fixed-rate notes
|
| Coupon: | 2.26%
|
| Price: | 99.972
|
| Yield: | 2.266%
|
| Spread: | 84 bps over Government of Canada benchmark
|
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