Brookfield sells C$400 million; Financement-Quebec reopens 2.45% notes; Quebecor improves

By Cristal Cody

Prospect News, Oct. 4 - Canadian issuers took advantage of better credit tone on Thursday with deals from Brookfield Infrastructure Partners LP and Financement-Quebec, while the new high-yield notes from Quebecor Media Inc. rose nearly 2 points in trading, sources said.

Brookfield Infrastructure raised C$400 million in an offering of five-year medium-term notes after announcing it was considering a deal earlier in the day.

Financement-Quebec came with a C$500 million reopening of its 2.45% medium-term notes due 2019.

Quebecor Media's new Canadian senior notes (B2/B+) sold late on Wednesday traded higher in the day's secondary market, a trader said.

"It's been trading like a new issue would," the trader said, noting the deal had "good liquidity. It's been a busier day with that name. It was free to trade last night, but really all the activity was more today."

The Markit CDX Series 18 North American investment-grade index firmed 1 basis point to a spread of 95 bps.

The Markit CDX Series 18 North American high-yield index moved up to 100.64 from 100.19.

Canada's government bonds traded lower over the day as yields climbed across the curve. The 10-year note yield rose 4 bps to 1.76%. The Canadian 30-year bond yield closed 5 bps higher at 2.37%.

Brookfield taps market

Brookfield Infrastructure sold C$400 million of 3.455% five-year medium-term notes at par to yield 215.6 bps over the Government of Canada benchmark, a company spokesman said.

The series 1 notes due Oct. 10, 2017 (/BBB+/) will be fully and unconditionally guaranteed by Brookfield Infrastructure and certain of its key holding subsidiaries.

RBC Dominion Securities Inc., Citigroup Global Markets Canada Inc., Credit Suisse Securities (Canada) Inc. and HSBC Securities (Canada) Inc. were the lead managers.

Proceeds will be used for general corporate purposes, including to refinance existing debt and to repay amounts outstanding under its credit facilities.

Brookfield Infrastructure, a Bermuda-based subsidiary of Brookfield Asset Management Inc., operates utilities, transportation and energy and timber businesses.

Financement-Quebec prices

Financement-Quebec (Aa2/A+//DBRS: A) sold C$500 million in a reopening of its 2.45% medium-term notes due Dec. 1, 2019 at 100.083 to yield 2.437% on Thursday, an informed bond source said.

The notes priced at a spread of 97 bps over the Government of Canada benchmark.

National Bank Financial Inc. was the lead manager.

Financement-Quebec first sold the issue on July 10 in a C$500 million offering that priced at 99.911 to yield 2.463%, or a spread of 105 bps over the Canadian government benchmark.

The total outstanding is C$1 billion.

Financement-Quebec is a Quebec provincial agency that provides financial services to public institutions.

Quebecor rises

In the secondary market, Quebecor Media's 6 5/8% notes due 2023 rose to 101.75 bid, 102.25 offered on Thursday, a bond source said.

Quebecor Media sold C$500 million of the notes (B2/B+) at par to yield 6.627%.

The deal included a U.S. dollar-denominated tranche of $850 million of 5¾% notes that priced at par to yield 5.752%.

The communications and media company is based in Montreal.

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