By Cristal Cody
Prospect News, Nov. 23 - Electronic toll road company 407 International Inc. sold C$700 million of notes in two tranches, upsized from C$500 million, on Tuesday, a source said.
The company sold C$300 million of series 10-D1 3.87% subordinated medium-term notes due Nov. 24, 2017 at 99.97 to yield 3.875%. The notes (DBRS: BBB) were sold in line with guidance at a spread of 115 bps over the Canadian benchmark.
The seven-year notes have a Canada call at 28.75 bps.
In the second tranche, 407 International sold C$400 million of series 10-A3 4.3% senior MTNs due May 26, 2021 at 99.966 to yield 4.303%. The notes (DBRS: A) priced at spread of 108.8 bps over the Canadian benchmark bond.
The notes have a Canada call at 27.25 bps.
The tranche was upsized from C$250 million and priced on the tighter side of guidance of a spread of 110 bps.
Lead managers were BMO Nesbitt Burns Inc. and RBC Dominion Securities Inc.
Co-managers were National Bank Financial Inc., Scotia Capital Inc., CIBC World Markets Inc., Casgrain & Co. Ltd. and TD Securities Inc.
Proceeds from the series 10-A3 notes will be used to repay the $250 million principal amount of series 08-A1 senior notes due on Jan. 25, 2011, on maturity or redemption, and for general corporate purposes.
The proceeds from the series 10-D1 notes will be used to repay, in part, the $300 million outstanding of series 08-D1 subordinated notes due Jan. 31, 2011, on maturity or redemption.
The toll highway operator is based in Woodbridge, Ont. 407 International is owned by a consortium comprised of Cintra Infraestructuras, Intoll, SNC-Lavalin Inc. and Canada Pension Plan Investment Board.
| Issuer: | 407 International Inc.
|
| Amount: | C$700 million
|
| Bookrunners: | BMO Nesbitt Burns Inc., RBC Dominion Securities Inc.
|
| Co-managers: | National Bank Financial Inc., Scotia Capital Inc., CIBC World Markets Inc., Casgrain & Co. Ltd., TD Securities Inc.
|
| Pricing date: | Nov. 23
|
| Settlement date: | Nov. 26
|
| Distribution: | Canada
|
|
|
| Notes due 2017
|
| Amount: | C$300 million
|
| Maturity: | Nov. 24, 2017
|
| Securities: | Subordinated medium-term notes
|
| Coupon: | 3.87%
|
| Price: | 99.97
|
| Yield: | 3.875%
|
| Spread: | 115 bps over Canada benchmark
|
| Call feature: | 28.75 bps over Canada benchmark
|
| Rating: | DBRS: BBB
|
| Price talk: | 115 bps
|
|
|
| Notes due 2021
|
| Amount: | C$400 million
|
| Maturity: | May 26, 2021
|
| Securities: | Senior medium-term notes
|
| Coupon: | 4.3%
|
| Price: | 99.966
|
| Yield: | 4.303%
|
| Spread: | 108.8 bps over Canada benchmark
|
| Call feature: | 27.25 bps
|
| Rating: | DBRS: A
|
| Price talk: | 110 bps
|
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