By Cristal Cody
Tupelo, Miss., Dec. 1 – Metro Inc. sold C$600 million of senior notes (/BBB/DBRS: BBB) in a previously reported two-tranche offering, according to additional details from the company.
The company priced C$300 million of 3.2% series C notes due Dec. 1, 2021 at 99.988 to yield 3.202%, or 153 basis points over the interpolated Government of Canada bond curve.
In the second tranche, Metro sold C$300 million of 5.03% series D notes due Dec. 1, 2044 at 99.954 to yield 5.033%. The bonds priced with a spread of 255 bps over the Government of Canada benchmark.
National Bank Financial Inc., BMO Nesbitt Burns Inc. and CIBC World Markets Inc. were the lead managers.
Metro plans to use the proceeds for working capital and other general corporate purposes, including to finance the redemption and retirement of its outstanding 4.98% medium-term notes due Oct. 15, 2015 and to repay amounts outstanding under a revolving credit facility.
The grocery and pharmaceutical drugstore chain is based in Montreal.
| Issuer: | Metro Inc.
|
| Amount: | C$600 million
|
| Securities: | Senior notes
|
| Bookrunners: | National Bank Financial Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc.
|
| Co-managers: | Desjardins Securities Inc., RBC Dominion Securities Inc., Scotia Capital Inc., TD Securities Inc.
|
| Pricing date: | Nov. 26
|
| Settlement date: | Dec. 1
|
| Ratings: | Standard & Poor’s: BBB
|
| DBRS: BBB
|
| Distribution: | Canada
|
|
|
| Series C notes
|
| Amount: | C$300 million
|
| Maturity: | Dec. 1, 2021
|
| Coupon: | 3.2%
|
| Price: | 99.988
|
| Yield: | 3.202%
|
| Spread: | 153 bps over interpolated Government of Canada bond curve
|
|
|
| Series D notes
|
| Amount: | C$300 million
|
| Maturity: | Dec. 1, 2044
|
| Coupon: | 5.03%
|
| Price: | 99.954
|
| Yield: | 5.033%
|
| Spread: | 255 bps over Government of Canada benchmark
|
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