By Andrea Heisinger
New York, Dec. 15 - Agrium Inc. priced $500 million of 6.125% 30-year senior debentures on Wednesday to yield Treasuries plus 160 basis points, a source away from the trade said.
The notes (Baa2/BBB/) were sold at 98.909 to yield 6.205%. They have a make-whole call at 25 bps over Treasuries before July 15, 2040. After that date they are callable at par until maturity.
The debentures feature a change-of-control put at 101%.
BNP Paribas Securities Corp., RBC Capital Markets Corp. and Scotia Capital USA Inc. were the bookrunners. Lead managers were BMO Capital Markets Corp., National Bank of Canada Financial Securities USA Corp. and Rabo Securities USA Inc.
Co-managers were CIBC World Markets Corp., RBS Securities Inc. and TD Securities USA LLC.
Proceeds are going to repay $125 million of 8.25% debentures due Feb. 15, 2011 and a portion of borrowings under a revolving credit facility incurred in connection with the AWB acquisition.
The agriculture products and service retailer is based in Calgary, Alta.
| Issuer: | Agrium Inc.
|
| Issue: | Senior debentures
|
| Amount: | $500 million
|
| Maturity: | Jan. 15, 2041
|
| Bookrunners: | BNP Paribas Securities Corp., RBC Capital Markets Corp., Scotia Capital USA Inc.
|
| Lead managers: | BMO Capital Markets Corp., National Bank of Canada Financial Securities USA Corp., Rabo Securities USA Inc.
|
| Co-managers: | CIBC World Markets Corp., RBS Securities Inc., TD Securities USA LLC
|
| Coupon: | 6.125%
|
| Price: | 98.909
|
| Yield: | 6.205%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole at Treasuries plus 25 bps before July 15, 2040 and at par after that date
|
| Change-of-control put: | 101%
|
| Trade date: | Dec. 15
|
| Settlement date: | Dec. 20
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
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