By Cristal Cody
Prospect News, Sept. 6 - 407 International Inc. priced C$200 million of 3.98% 40-year senior secured medium-term notes (/A/DBRS: A) at 99.861 to yield 3.987% on Thursday, according to an informed bond source.
The series 12-A2 notes priced at a spread of 160 basis points over the Government of Canada benchmark.
BMO Capital Markets Corp. and RBC Capital Markets Corp. were the bookrunners.
The notes have a Canada call at 40 bps over the Canada bond yield and a call at par three months prior to maturity.
Proceeds will be used for general corporate purposes.
407 International last tapped the Canadian debt markets on April 20. The company sold C$400 million of 4.19% 30-year senior secured medium-term notes at 99.864 to yield 4.198%, or a spread of 156 bps over the Canadian government benchmark.
The company is a Woodbridge, Ont.-based toll highway operator.
| Issuer: | 407 International Inc.
|
| Amount: | C$200 million
|
| Maturity: | Sept. 11, 2052
|
| Securities: | Senior secured medium-term notes
|
| Bookrunners: | BMO Capital Markets Corp., RBC Capital Markets Corp.
|
| Co-managers: | National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Casgrain & Co. Ltd., CIBC World Markets Inc.
|
| Coupon: | 3.98%
|
| Price: | 99.861
|
| Yield: | 3.987%
|
| Spread: | 160 bps over Canadian government benchmark
|
| Call feature: | Canada call at 40 bps over Canada bond yield; par call three months prior to maturity
|
| Pricing date: | Sept. 6
|
| Settlement date: | Sept. 11
|
| Ratings: | Standard & Poor's: A
|
| DBRS: A
|
| Distribution: | Canada
|
| Price talk: | 160 bps over Canadian government benchmark
|
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