By Cristal Cody
Prospect News, June 10 – Veresen Inc. sold C$200 million of 3.06% five-year senior medium-term notes at 99.959 to yield 3.069% on Tuesday, according to the company and an informed source.
The series 4 notes due June 13, 2019 (/BBB/DBRS: BBB) priced at a spread of 143 basis points over the interpolated Government of Canada bond curve, tighter than marketing guidance of 145 bps.
CIBC World Markets Inc. and Scotia Capital Inc. were the bookrunners. TD Securities Inc. was a lead manager.
Veresen was last in the primary market on March 8, 2012, when it priced C$300 million of 3.95% notes due 2017 and C$50 million of 5.05% notes due 2022.
The Calgary, Alta.-based energy pipeline and power company plans to use the proceeds from the deal on July 10 to redeem C$200 million of outstanding 5.6% series 1 senior notes due July 28, 2014.
| Issuer: | Veresen Inc.
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| Amount: | C$200 million
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| Maturity: | June 13, 2019
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| Securities: | Senior medium-term notes
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| Bookrunners: | CIBC World Markets Inc. and Scotia Capital Inc.
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| Lead manager: | TD Securities Inc.
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| Co-managers: | National Bank Financial Inc., RBC Dominion Securities Inc. and HSBC Capital (Canada) Inc.
|
| Coupon: | 3.6%
|
| Price: | 99.959
|
| Yield: | 3.069%
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| Spread: | 143 bps over interpolated Government of Canada bond curve
|
| Pricing date: | June 10
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| Settlement date: | June 13
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| Ratings: Standard & Poor’s: BBB
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| DBRS: BBB
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| Distribution: | Canada
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| Price talk: | 145 bps over interpolated Government of Canada bond curve
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