By Cristal Cody
Tupelo, Miss., May 12 – Heathrow (SP) Ltd. sold an upsized C$500 million offering of 3.25% class A notes at 99.139 to yield 3.352% in Canada on Tuesday, according to the company and a market source.
The notes priced inside guidance at a spread of 154 basis points over the interpolated Government of Canada bond curve.
The deal was upsized from C$350 million. Heathrow said support from Canadian institutional investors was high with demand near C$1 billion.
BofA Merrill Lynch, CIBC World Markets Inc., RBC Dominion Securities Inc. and Scotia Capital Inc. were the lead managers.
The notes have a legal maturity of May 21, 2027 and are scheduled for redemption on May 21, 2025 at the Canada bond yield plus 38.5 bps.
Proceeds from the transaction will be used for general corporate purposes.
The deal is Heathrow’s third bond offering in Canada since 2012.
The company is part of Heathrow Airport Holdings Ltd., which operates airports including London Heathrow Airport Ltd.
| Issuer: | Heathrow (SP) Ltd.
|
| Amount: | C$500 million, increased from C$350 million
|
| Maturity: | May 21, 2027
|
| Securities: | Notes
|
| Bookrunners: | BofA Merrill Lynch, CIBC World Markets Inc., RBC Dominion Securities Inc., Scotia Capital Inc.
|
| Co-manager: | TD Securities Inc.
|
| Coupon: | 3.25%
|
| Price: | 99.139
|
| Yield: | 3.352%
|
| Spread: | 154 bps over interpolated Government of Canada bond curve
|
| Call feature: | May 21, 2025 at Canada bond yield plus 38.5 bps
|
| Pricing date: | May 12
|
| Settlement date: | May 21
|
| Distribution: | Canada
|
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