By Cristal Cody
Tupelo, Miss., May 16 – North West Redwater Partnership and co-issuer NWR Financing Co. Ltd. sold C$1.5 billion of senior secured bonds (Baa1/A-//DBRS: A) in a two-part offering on Tuesday, according to a market source.
The C$750 million tranche of 2.8% bonds due June 1, 2027 priced at 99.739 to yield 2.83%, or a spread of 125 basis points over the Government of Canada benchmark.
The issuers sold C$750 million of 3.65% bonds due June 1, 2035 at 99.933 to yield 3.655%, or a spread of 163 bps over the Government of Canada benchmark.
RBC Dominion Securities Inc. and TD Securities Inc. were the lead managers.
Alberta-based North West Redwater is a general partnership formed to construct and operate a diesel refinery by NWU LP, a subsidiary of North West Upgrading Inc., and Canadian Natural Upgrading Ltd., a subsidiary of Canadian Natural Resources Ltd.
| Issuer: | North West Redwater Partnership/NWR Financing Co. Ltd.
|
| Amount: | C$1.5 billion
|
| Securities: | Senior secured bonds
|
| Bookrunners: | RBC Dominion Securities Inc. and TD Securities Inc.
|
| Pricing date: | May 16
|
| Settlement date: | May 19
|
| Ratings: | Moody’s: Baa1
|
| S&P: A-
|
| DBRS: A
|
| Distribution: | Canada
|
|
|
| 10-year bonds
|
| Amount: | C$750 million
|
| Maturity: | June 1, 2027
|
| Coupon: | 2.8%
|
| Price: | 99.739
|
| Yield: | 2.83%
|
| Spread: | 125 bps over Government of Canada benchmark
|
|
|
| 18-year bonds
|
| Amount: | C$750 million
|
| Maturity: | June 1, 2035
|
| Coupon: | 3.65%
|
| Price: | 99.933
|
| Yield: | 3.655%
|
| Spread: | 163 bps over Government of Canada benchmark
|
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