By Cristal Cody
Prospect News, Nov. 30 - PSP Capital Inc., a subsidiary of the Public Sector Pension Investment Board, sold C$700 million 2.94% series 2 medium-term notes due Dec. 3, 2015 at 99.958 to yield 2.949% on Tuesday, according to a source.
The notes (DBRS: AAA) priced at a spread of 62.1 basis points over the Government of Canada benchmark. The notes were talked at a spread of 64 bps.
The sale was upsized from C$500 million.
TD Securities Inc. and RBC Capital Markets Corp. were the bookrunners. Co-managers were BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., Casgrain & Co. Ltd. and Laurentian Bank Securities, Inc.
The notes are guaranteed by the Public Sector Pension Investment Board.
Proceeds will be used to repay short-term debt.
PSP Capital was created to raise financing for investment activities through short-term and long-term borrowing. Ottawa-based Public Sector Pension Investment Board is a crown corporation that manages the pension plans from the Canadian federal public service, Canadian Forces and Royal Canadian Mounted Police.
| Issuer: | PSP Capital Inc.
|
| Guarantor: | Public Sector Pension Investment Board
|
| Amount: | C$700 million, increased from C$500 million
|
| Maturity: | Dec. 3, 2015
|
| Securities: | Medium-term notes
|
| Bookrunners: | TD Securities Inc., RBC Capital Markets Corp.
|
| Co-managers: | BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc.; Casgrain & Co. Ltd., Laurentian Bank Securities, Inc.
|
| Coupon: | 2.94%
|
| Price: | 99.958
|
| Yield: | 2.949%
|
| Spread: | 62.1 bps over Canadian government benchmark
|
| Call feature: | Flat to Canada benchmark
|
| Pricing date: | Nov. 30
|
| Settlement date: | Dec. 3
|
| Rating: | DBRS: AAA
|
| Distribution: | Canada
|
| Price talk: | 64 bps over Canadian government benchmark
|
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