Published on 2/25/2015 in the Prospect News Canadian Bonds Daily and Prospect News Investment Grade Daily.
New Issue: Canada’s Agrium prices $1 billion of debentures due 2025, 2035
By Aleesia Forni
Virginia Beach, Feb. 25 – Agrium Inc. priced $1 billion of debentures (Baa2/BBB/) in two tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
A $550 million tranche of 3.375% 10-year notes priced at 99.855 to yield 3.392%, or Treasuries plus 142 basis points.
The notes sold at the tight end of talk set in the Treasuries plus 145 bps area, which tightened from guidance set at 160 bps to 165 bps over Treasuries.
A second tranche was $450 million of 4.125% 20-year bonds priced with a spread of Treasuries plus 162 bps. Pricing was at 99.11 to yield 4.191%.
The notes sold at the tight end of the 165 bps area talk after having tightened from guidance in the 180 bps area.
BofA Merrill Lynch, RBC Capital Markets LLC and CIBC World Markets Corp. were the bookrunners.
Proceeds will be used to reduce short-term debt.
The retailer of agricultural products is based in Calgary, Alta.
| Issuer: | Agrium Inc.
|
| Issue: | Debentures
|
| Amount: | $1 billion
|
| Bookrunners: | BofA Merrill Lynch, RBC Capital Markets LLC, CIBC World Markets Corp.
|
| Co-managers: | BMO Capital Markets Corp., Scotia Capital (USA) Inc., BNP Paribas Securities Corp., AltaCorp Capital Inc., National Bank of Canada Financial Inc., TD Securities (USA) LLC, RBS Securities Inc., ANZ Securities, Inc., MUFG, Mizuho Securities USA Inc.
|
| Trade date: | Feb. 25
|
| Settlement date: | March 2
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Distribution: | SEC registered
|
|
|
| 10-year debentures
|
| Amount: | $550 million
|
| Maturity: | March 15, 2025
|
| Coupon: | 3.375%
|
| Price: | 99.855
|
| Yield: | 3.392%
|
| Spread: | 142 bps over Treasuries
|
| Price talk: | 145 bps area, tightened from 160 bps to 165 bps
|
| Make-whole call: | 25 bps prior to Dec. 15, 2024, then callable at par
|
|
|
| 20-year debentures
|
| Amount: | $450 million
|
| Maturity: | March 15, 2035
|
| Coupon: | 4.125%
|
| Price: | 99.11
|
| Yield: | 4.191%
|
| Spread: | 162 bps
|
| Price talk: | 165 bps area, tightened from 180 bps area
|
| Make-whole call: | 25 bps prior to Sept. 15, 2034, then callable at par
|
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