By Cristal Cody
Tupelo, Miss., Sept. 5 – 407 International Inc. priced C$800 million of senior and subordinated notes on Tuesday in two parts, according to a company news release.
407 International sold C$300 million of series 17-D1 subordinated notes due Sept. 8, 2022 (BBB//DBRS: BBB) with a 2.47% coupon.
The company priced C$500 million of series 17-A2 senior notes due Sept. 8, 2044 (/A/DBRS: A) with a 3.65% interest rate.
BMO Nesbitt Burns Inc. and RBC Dominion Securities Inc. were the lead managers.
Proceeds from the offering of subordinated notes will be used to repay the C$300 million outstanding of series 10-D1 subordinated notes due Nov. 24, 2017 at maturity or redemption.
Proceeds from the senior notes will be used to fund a series reserve account, to repay principal amounts owed to certain Canadian chartered banks under some 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 Ferrovial SA, Canada Pension Plan Investment Board and SNC-Lavalin Inc.
| Issuer: | 407 International Inc.
|
| Amount: | C$800 million
|
| Description: | Notes
|
| Bookrunners: | BMO Nesbitt Burns Inc. and RBC Dominion Securities Inc.
|
| Co-managers: | CIBC World Markets Inc., Casgrain & Co. Ltd., National Bank Financial Inc., Scotia Capital Inc. and TD Securities Inc.
|
| Trade date: | Sept. 5
|
| Settlement date: | Sept. 8
|
| Distribution: | Canada
|
|
|
| Subordinated notes
|
| Amount: | C$300 million
|
| Issue: | Series 17-D1 subordinated notes
|
| Maturity: | Sept. 8, 2022
|
| Coupon: | 2.47%
|
| Ratings: | S&P: BBB
|
| DBRS: BBB
|
|
|
| Senior notes
|
| Amount: | C$500 million
|
| Issue: | Series 17-A2 senior notes
|
| Maturity: | Sept. 8, 2044
|
| Coupon: | 3.65%
|
| Ratings: | S&P: A
|
| DBRS: A
|
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