By Cristal Cody
Prospect News, Feb. 3 - Veresen Inc. said Friday that it priced C$150 million of cumulative redeemable preferred shares to yield 4.4% for the initial period to Sept. 30, 2017.
The company sold 6 million series A preferred shares (DBRS: Pfd-3) at C$25 per share.
The deal includes an over-allotment option of C$50 million, or 2 million shares.
Scotia Capital Inc., TD Securities Inc. and CIBC World Markets Inc. were the lead managers.
The shares are redeemable by Veresen at its option on Sept. 30, 2017 and on Sept. 30 of every fifth year after that.
The dividend rate will reset on Sept. 30, 2017 and every five years at a rate equal to the five-year Government of Canada bond yield plus 292 basis points.
An application has been made to list the preferreds on the Toronto Stock Exchange.
Proceeds will be used to reduce debt, partially fund capital expenditures and for other general corporate purposes.
The pipeline and energy company is based in Calgary, Alta.
| Issuer: | Veresen Inc.
|
| Amount: | C$150 million, 6 million shares
|
| Greenshoe: | C$50 million, 2 million shares
|
| Maturity: | Sept. 30, 2017
|
| Securities: | Cumulative redeemable preferred shares
|
| Bookrunners: | Scotia Capital Inc., TD Securities Inc. and CIBC World Markets Inc.
|
| Price: | C$25 per share
|
| Dividend: | 4.4%
|
| Call feature: | September 30, 2017 and Sept. 30 of every subsequent fifth year
|
| Pricing date: | Feb. 3
|
| Settlement date: | Feb. 14
|
| Ratings: DBRS: Pfd-3
|
| Distribution: | Canada
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
