Canada bond issuers stay quiet; Canaccord Financial sells preferred stock; Husky widens

By Cristal Cody

Prospect News, March 22 - Canadian bond markets stayed mostly quiet under a weaker tone on Thursday.

Canaccord Financial Inc. was in the market with an offering of C$100 million of preferred shares.

Bonds were weaker over the day and trading was "relatively light," a source said.

The Markit CDX Series 18 North American investment-grade index eased 3 basis points to a spread of 90 bps.

Bank and financial paper traded 5 bps to 25 bps wider on the day, a trader said.

Bank of Montreal's five-year notes sold earlier this year traded 5 bps weaker.

Husky Energy Inc.'s bonds have widened 8 bps since the issue priced on March 19.

Government bonds traded higher on a bid for safer debt and weaker domestic retail data. Canada's 10-year note yield dropped to 2.19% from 2.23%. The 30-year bond yield fell 1 bp to 2.73%.

Statistics Canada said retail sales rose 0.5% to C$38.9 billion in January, less than forecast.

Canaccord sells preferreds

Canaccord Financial sold C$100 million of five-year cumulative rate reset first preferred shares (DBRS: Pfd-3) to yield 5.75% for the initial period through June 30, 2017.

Canaccord Financial sold 4 million shares of the series C preferred stock at C$25.00 per share.

CIBC World Markets Inc., Canaccord Genuity Corp. and RBC Capital Markets Corp. were the lead managers.

The deal includes an over-allotment option of C$15 million, or 600,000 shares.

Proceeds will be used to reduce outstanding borrowings under the $150 million senior secured credit facility provided by Canadian Imperial Bank of Commerce.

Vancouver, B.C.-based Canaccord Financial is a leading financial services firm that operates in global capital markets and wealth management.

Bank of Montreal eases

Bank of Montreal's 2.5% senior notes due 2017 (Aa2/A+/AA-) eased 5 bps to 110 bps over Treasuries on Thursday in the secondary market, a source said.

The notes priced in a $1.5 billion offering on Jan. 6 at a spread of 170 bps over Treasuries.

The financial services company is based in Toronto and Montreal.

Husky weaker

Husky Energy's 3.95% senior notes due 2022 widened to 168 bps bid, 163 bps offered in trading, a trader said on Thursday.

The company sold $500 million of the 10-year notes (Baa2/BBB+/) at Treasuries plus 160 bps on March 19.

The petroleum company is based in Calgary, Alta.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.