By Cristal Cody
Prospect News, Dec. 13 - Algoma Power Inc. priced C$52 million of 30-year senior notes at par to yield 5.118% on Tuesday, a bond source said.
The bonds due Dec. 16, 2041 priced at a spread of 250 basis points over the Government of Canada benchmark.
The bonds are redeemable at the Canadian government benchmark plus 50 bps.
CIBC World Markets Inc. was the bookrunner.
Proceeds will be used to refinance intercompany debt related to FortisOntario Inc.'s acquisition of Algoma and for general corporate purposes.
Algoma Power is a Sault Ste. Marie, Ont.-based electric utility and subsidiary of FortisOntario Inc.
| Issuer: | Algoma Power Inc.
|
| Amount: | C$52 million
|
| Maturity: | Dec. 16, 2041
|
| Securities: | Senior notes
|
| Bookrunner: | CIBC World Markets Inc.
|
| Coupon: | 5.118%
|
| Price: | Par
|
| Yield: | 5.118%
|
| Spread: | 250 bps over Government of Canada benchmark
|
| Call feature: | Canadian government benchmark plus 50 bps
|
| Pricing date: | Dec. 13
|
| Settlement date: | Dec. 16
|
| Distribution: | Canada
|
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