Published on 5/28/2013 in the Prospect News Canadian Bonds Daily and Prospect News Investment Grade Daily.
New Issue: Canada's Agrium prices $1 billion debentures in 10-, 30-year tranches
By Andrea Heisinger
New York, May 28 - Agrium Inc. priced $1 billion of senior debentures (Baa2/BBB/) Tuesday in tranches due 2023 and 2043, according to an FWP filing with the Securities and Exchange Commission.
The $500 million of 3.5% 10-year notes priced at 99.899 to yield 3.512% with a spread of Treasuries plus 140 basis points. There is a make-whole call at Treasuries plus 25 bps until March 1, 2023 and a par call after that date.
A $500 million tranche of 4.9% 30-year bonds sold at 99.238 to yield 4.949% with a spread of 170 bps over Treasuries. There is a make-whole call at 30 bps over Treasuries until Dec. 1, 2042 and a call at par afterward.
There is a change-of-control put at 101% on the bonds.
BofA Merrill Lynch, RBC Capital Markets LLC and Scotia Capital (USA) Inc. were the bookrunners.
Proceeds will be used to fund anticipated capital expenditures.
Agrium last tapped the U.S. bond market with a $500 million sale of 3.15% 10-year notes priced at 145 bps over Treasuries on Sept. 24, 2012.
The retailer of agricultural products and services is based in Calgary, Alta.
| Issuer: | Agrium Inc.
|
| Issue: | Senior debentures
|
| Amount: | $1 billion
|
| Bookrunners: | BofA Merrill Lynch, RBC Capital Markets LLC, Scotia Capital (USA) Inc.
|
| Co-managers: | BMO Capital Markets Corp., CIBC World Markets Corp., AltaCorp Capital (U.S.A.) Inc., BNP Paribas Securities Corp., National Bank of Canada Financial Inc., RBS Securities Inc., TD Securities (USA) LLC, ANZ Securities, Inc., Mizuho Securities USA Inc.
|
| Change-of-control put: | At 101%
|
| Trade date: | May 28
|
| Settlement date: | May 31
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | June 1, 2023
|
| Coupon: | 3.5%
|
| Price: | 99.899
|
| Yield: | 3.512%
|
| Spread: | Treasuries plus 140 bps
|
| Call: | Make-whole at Treasuries plus 25 bps until March 1, 2023, par call after
|
|
|
| 30-year bonds
|
| Amount: | $500 million
|
| Maturity: | June 1, 2043
|
| Coupon: | 4.9%
|
| Price: | 99.238
|
| Yield: | 4.949%
|
| Spread: | Treasuries plus 170 bps
|
| Call: | Make-whole at Treasuries plus 30 bps to Dec. 1, 2042, par call after
|
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