By Cristal Cody
Tupelo, Miss., March 4 – 407 International Inc. priced an C$800 million two-part offering of senior notes (A//DBRS: A) on Monday, according to a news release.
407 International priced C$300 million of 3.14% notes due March 6, 2030 and C$500 million of 3.67% senior notes due March 8, 2049.
BMO Nesbitt Burns Inc. and RBC Dominion Securities Inc. were the lead managers.
Proceeds from the 2030 notes will be used to fund a series reserve account and with other available funds to repay $300 million of series 10-A2 senior notes due June 16, 2020 on maturity or redemption.
The proceeds from the 30-year tranche will be used to fund a series reserve account, to repay principal amounts owed to certain Canadian chartered banks under certain 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: | Senior notes
|
| Bookrunners: | BMO Nesbitt Burns Inc. and RBC Dominion Securities Inc.
|
| Co-managers: | CIBC World Markets Inc., Scotia Capital Inc., Casgrain & Co. Ltd., National Bank Financial Inc. and TD Securities Inc.
|
| Trade date: | March 4
|
| Settlement date: | March 6
|
| Ratings: | S&P: A
|
| DBRS: A
|
| Distribution: | Canada
|
|
|
| Notes due 2030
|
| Amount: | C$300 million
|
| Description: | Series 19-A1 senior notes
|
| Maturity: | March 6, 2030
|
| Coupon: | 3.14%
|
|
|
| Notes due 2049
|
| Amount: | C$500 million
|
| Description: | Series 19-A2 senior notes
|
| Maturity: | March 8, 2049
|
| Coupon: | 3.67%
|
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