By Cristal Cody
Tupelo, Miss., Oct. 2 - 407 International Inc. sold C$200 million of 4.68% 40-year senior secured medium-term notes at 99.982 to yield 4.681% on Wednesday, according to an informed source.
The series 13-A1 notes due Oct. 7, 2053 (/A/DBRS: A) priced at a spread of 158 basis points over the Government of Canada benchmark, at the tight end of guidance of 160 bps, plus or minus 2 bps.
RBC Dominion Securities Inc. and BMO Nesbitt Burns Inc. were co-lead managers.
The company may redeem the notes at its option at 39.5 bps over the Canada bond yield prior to April 7, 2053 and at par plus accrued interest six months prior to maturity.
The Woodbridge, Ont.-based toll highway operator plans to use the proceeds to refinance existing debt, for the formation of a reserve for new debt and for general corporate purposes.
| Issuer: | 407 International Inc.
|
| Amount: | C$200 million
|
| Maturity: | Oct. 7, 2053
|
| Securities: | Senior secured medium-term notes
|
| Bookrunners: | RBC Dominion Securities Inc., BMO Nesbitt Burns Inc.
|
| Co-managers: | CIBC World Markets Inc., National Bank Financial Inc., Casgrain & Co. Ltd., Scotia Capital Inc., TD Securities Inc.
|
| Coupon: | 4.68%
|
| Price: | 99.982
|
| Yield: | 4.681%
|
| Spread: | 158 bps over Canadian government benchmark
|
| Call feature: | 39.5 bps over Canada bond yield; par call six months prior to maturity
|
| Pricing date: | Oct. 2
|
| Settlement date: | Oct. 7
|
| Ratings: | Standard & Poor's: A
|
| DBRS: A
|
| Distribution: | Canada
|
| Price talk: | 160 bps, plus or minus 2 bps
|
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