By Cristal Cody
Prospect News, Nov. 17 - Veresen Inc. sold C$150 million of 4% seven-year senior medium-term notes at 99.728 to yield 4.045% on Thursday, a bond source said.
The notes due Nov. 22, 2018 (/BBB/DBRS: BBB) priced at a spread of 230 basis points over the Government of Canada benchmark.
CIBC World Markets Inc. was the bookrunner. Scotia Capital Inc. and TD Securities Inc. were the joint lead managers.
Co-managers were HSBC Capital (Canada) Inc., National Bank Financial Inc. and RBC Capital Markets Corp.
Proceeds will be used to reduce Veresen's outstanding debt, to finance future growth opportunities, including acquisitions and investments, and for general corporate purposes.
Calgary, Alta.-based Veresen operates gas pipelines and processing facilities.
| Issuer: | Veresen Inc.
|
| Amount: | C$150 million
|
| Maturity: | Nov. 22, 2018
|
| Securities: | Medium-term notes
|
| Bookrunner: | CIBC World Markets Inc.
|
| Joint lead managers: | Scotia Capital Inc., TD Securities Inc.
|
| Co-managers: | HSBC Capital (Canada) Inc., National Bank Financial Inc., RBC Capital Markets Corp.
|
| Coupon: | 4%
|
| Price: | 99.728
|
| Yield: | 4.045%
|
| Spread: | 230 bps over Government of Canada benchmark
|
| Call feature: | Canada call plus 57 bps
|
| Pricing date: | Nov. 17
|
| Settlement date: | Nov. 22
|
| Ratings: | Standard & Poor's: BBB
|
| DBRS: BBB
|
| Distribution: | Canada
|
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