By Cristal Cody
Tupelo, Miss., Oct. 24 – Toromont Industries Ltd. priced C$500 million of 3.842% 10-year senior notes (DBRS: BBB) on Tuesday at par to yield 175 basis points over the interpolated Government of Canada bond curve, according to a market source and company press release.
TD Securities Inc., CIBC World Markets Inc. and BMO Nesbitt Burns Inc. were the bookrunners for the private placement offering.
Proceeds will be used, with cash on hand and committed credit facilities, to fund the cash portion of the purchase price for the company’s planned acquisition of the business and net operating assets of the Hewitt group of companies, which will close concurrently on Oct. 27 with the offering.
The Concord, Ont.-based company provides construction equipment and refrigeration systems.
| Issuer: | Toromont Industries Ltd.
|
| Amount: | C$500 million
|
| Description: | Senior notes
|
| Maturity: | Oct. 27, 2027
|
| Bookrunners: | TD Securities Inc., CIBC World Markets Inc. and BMO Nesbitt Burns Inc.
|
| Coupon: | 3.842%
|
| Price: | Par
|
| Yield: | 3.842%
|
| Spread: | 175 bps over interpolated Government of Canada bond curve
|
| Trade date: | Oct. 24
|
| Settlement date: | Oct. 27
|
| Rating: | DBRS: BBB
|
| Distribution: | Canada private placement
|
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