Enbridge sells C$300 million; Calloway REIT prices 5% bonds; Canadian credit weaker

By Cristal Cody

Tupelo, Miss., Sept. 23 - Two deals priced in the Canadian corporate bond market as rates continued to fall on Thursday, sources said.

Enbridge Inc. sold C$300 million in two tranches of bonds, a source said.

The pipeline operator priced $200 million of 10-year notes at a spread of 144.3 bps over Canadian government benchmark bonds for a yield of 4.266%, the source said.

The company also priced $100 million of 30-year bonds at a spread of 170 bps over the Canadian government bond due 2037 for a yield of 3.42%.

The bonds traded "a bit better" in the secondary market, a source said.

Also in the market on Thursday, Calloway Real Estate Investment Trust sold C$100 million of debt.

The company priced the 5% bonds due 2019 at par, according to a source.

Canadian Imperial Bank of Commerce was the lead bookrunner.

Elsewhere in the corporate bond market, the new debt sold on Wednesday from Rogers Communications Inc. firmed in the secondary market, a trader said.

Rogers Communications priced C$900 million of 4.7% 10-year senior notes (DBRS: BBB) at a spread of 185.2 bps over the Canadian government benchmark bond.

"They're now trading at 182, so about 3 basis points tighter on the bid side," the trader said. "They traded as tight as a bid of 178."

Canadian government bond yields continued to drop in line with U.S. Treasuries.

The 10-year yield fell to 2.834% from 2.85%. The two-year note yield ended at 1.412% from 1.41%.

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