Saskatchewan Wheat Pool talks C$100 million seven-year notes at 8% area

By Paul A. Harris

St. Louis, March 28 - Saskatchewan Wheat Pool Inc. is talking its C$100 million offering of seven-year senior unsecured notes at the 8% area, according to a market source.

Pricing is expected on Thursday.

TD Securities has the books for the notes, which will be priced off the shelf in Canada, and via Rule 144A in the United States. Genuity Capital Markets and RBC Dominion Securities are co-managers.

The notes will be callable with a make-whole call for the first four years and then will become callable at a premium. The notes will also come with a three-year 35% equity clawback.

The company previously downsized the bond offering from C$150 and shifted C$50 million of the planned proceeds to a common share "bought deal."

Proceeds, along with available working capital, will be used to redeem Pool's 12% senior subordinated notes due Nov. 29, 2008.

Dominion Bond Rating Service assigns its B rating to the notes. Standard & Poor's also rates the notes at B.

Pool is a publicly traded agribusiness with headquarters in Regina, Saskatchewan.

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