By Cristal Cody
Eureka Springs, Ark., May 16 – 407 International Inc. sold C$500 million of 3.6% senior notes due May 21, 2047 on Monday at 99.888 to yield 3.606%, according to a company news release and a market source.
The series 16-A1 bonds priced with a spread of 162 basis points over the Government of Canada benchmark.
RBC Dominion Securities Inc. and BMO Nesbitt Burns Inc. were the bookrunners.
The proceeds will be used to fund a series reserve account, to repay principal amounts owed to certain Canadian chartered banks under certain of the company’s senior secured revolving credit facilities and for general corporate purposes.
407 International is a Woodbridge, Ont.-based toll highway operator owned by a consortium that includes Cintra Infraestructuras, the Canada Pension Plan Investment Board and SNC-Lavalin Inc.
| Issuer: | 407 International Inc.
|
| Amount: | C$500 million
|
| Maturity: | May 21, 2047
|
| Securities: | Senior notes
|
| Bookrunners: | RBC Dominion Securities Inc., BMO Nesbitt Burns Inc.
|
| Co-managers: | CIBC World Markets Inc., National Bank Financial Inc., Scotia Capital Inc., Casgrain & Co. Ltd., TD Securities Inc.
|
| Coupon: | 3.6%
|
| Price: | 99.888
|
| Yield: | 3.606%
|
| Spread: | 162 bps over Government of Canada benchmark
|
| Pricing date: | May 16
|
| Settlement date: | May 19
|
| Ratings: | S&P: A
|
| DBRS: A
|
| Distribution: | Canada
|
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