By Cristal Cody
Prospect News, May 15 - 407 East Development Group General Partnership priced C$571,406,000 in two tranches of public-private partnership senior bonds (DBRS: A) on Tuesday, a bond source said.
In the first tranche, the group sold C$451 million of 2.813% notes due Dec. 18, 2016 at par, or a spread of 138.4 basis points over the Government of Canada benchmark.
In the second tranche, 407 East Development Group sold C$120,406,000 of 4.473% bonds due June 23, 2045 at par, or a spread of 203 bps over the Canadian government benchmark.
The group held a roadshow on May 1.
BMO Capital Markets Corp. and Desjardins Securities Inc. were the bookrunners. Co-managers were Casgrain & Co. Ltd., National Bank Financial Inc., RBC Capital Markets Corp., Scotia Capital Inc. and TD Securities Inc.
Proceeds will be used to extend Highway 407 with the project expected to start in May and be completed in 2015.
The special entity was created to design, build, finance and maintain a portion of highway in the Province of Ontario.
| Issuer: | 407 East Development Group General Partnership
|
| Amount: | C$571,406,000
|
| Securities: | Public-private partnership senior bonds
|
| Bookrunners: | BMO Capital Markets Corp., Desjardins Securities Inc.
|
| Co-managers: | Casgrain & Co. Ltd., National Bank Financial Inc., RBC Capital Markets Corp., Scotia Capital Inc., TD Securities Inc.
|
| Pricing date: | May 15
|
| Settlement date: | May 18
|
| Rating: | DBRS: A
|
| Distribution: | Canada
|
|
|
| Bonds due 2016
|
| Amount: | C$451 million
|
| Maturity: | Dec. 18, 2016
|
| Coupon: | 2.813%
|
| Price: | Par
|
| Yield: | 2.813%
|
| Spread: | 138.4 bps over Government of Canada benchmark
|
|
|
| Bonds due 2045
|
| Amount: | C$120,406,000
|
| Maturity: | June 23, 2045
|
| Coupon: | 4.473%
|
| Price: | Par
|
| Yield: | 4.473%
|
| Spread: | 203 bps over the Canadian government benchmark
|
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