By Cristal Cody
Tupelo, Miss., Sept. 6 – 407 International Inc. provided additional details of its previously announced C$800 million two-part sale of senior and subordinated notes sold on Tuesday, according to final term sheets.
407 International priced C$300 million of 2.47% series 17-D1 subordinated notes due Sept. 8, 2022 (/BBB/DBRS: BBB) at 99.986 to yield 2.473%.
The company sold C$500 million of 3.65% series 17-A2 senior secured notes due Sept. 8, 2044 (/A/DBRS: A) at 99.846 to yield 3.659%.
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: | Subordinated notes
|
| Maturity: | Sept. 8, 2022
|
| Coupon: | 2.47%
|
| Price: | 99.986
|
| Yield: | 2.473%
|
| Call features: | Make-whole call before Aug. 8, 2022 at Government of Canada bond yield plus 22 bps; thereafter at par
|
| Ratings: | S&P: BBB
|
| DBRS: BBB
|
|
|
| Senior secured notes
|
| Amount: | C$500 million
|
| Issue: | Senior secured notes
|
| Maturity: | Sept. 8, 2044
|
| Coupon: | 3.65%
|
| Price: | 99.846
|
| Yield: | 3.659%
|
| Call features: | Make-whole call before March 8, 2044 at Government of Canada bond yield plus 34 bps; thereafter at par
|
| Ratings: | S&P: A
|
| DBRS: A
|
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