By Cristal Cody
Eureka Springs, Ark., Nov. 7 – Veresen Inc. sold C$350 million of 3.43% five-year senior medium-term notes on Monday at 99.991 to yield 3.432%, according to a market source and a company news release.
The series 5 notes (/BBB/DBRS: BBB) priced with a spread of 270 basis points over the interpolated Government of Canada bond curve.
CIBC World Markets Inc. and Scotia Capital Inc. were the lead managers.
Veresen intends to use the proceeds to reduce outstanding debt under its revolving credit facility and for general corporate purposes. The company expects to repay all of the outstanding C$300 million 3.95% series 2 senior medium term notes due March 14, 2017 upon maturity using its revolving credit facility.
Veresen is a Calgary, Alta.-based publicly traded dividend paying corporation that owns and operates energy infrastructure assets, including pipeline transportation services.
| Issuer: | Veresen Inc.
|
| Amount: | C$350 million
|
| Maturity: | Nov. 10, 2021
|
| Securities: | Senior medium-term notes
|
| Bookrunners: | CIBC World Markets Inc., Scotia Capital Inc.
|
| Coupon: | 3.43%
|
| Price: | 99.991
|
| Yield: | 3.432%
|
| Spread: | 270 bps over interpolated Government of Canada bond curve
|
| Pricing date: | Nov. 7
|
| Settlement date: | Nov. 10
|
| Ratings: | S&P: BBB
|
| DBRS: BBB
|
| Distribution: | Canada
|
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