By Cristal Cody
Prospect News, June 8 - Finning International Inc. (/BBB+/DBRS: A) raised C$150 million in an offering of 5.077% medium-term notes priced at par on Friday, according to an informed source.
The notes due June 13, 2042 priced at a spread of 272 basis points over the Government of Canada benchmark.
TD Securities Inc., RBC Capital Markets Corp. and Scotia Capital Inc. were the lead managers.
Proceeds will be used to repay outstanding debt, including borrowings under existing credit facilities or the company's commercial paper program. Finning also may invest the proceeds in short-term investments until its acquisition of the Canadian portion of a subsidiary of Caterpillar Inc. closes in the third quarter and then use the proceeds to directly pay a portion of the purchase price for the acquisition.
The heavy equipment dealer is based in Vancouver, B.C.
| Issuer: | Finning International Inc.
|
| Amount: | C$150 million
|
| Maturity: | June 13, 2042
|
| Securities: | Medium-term notes
|
| Bookrunners: | TD Securities, RBC Capital Markets, Scotia Capital
|
| Coupon: | 5.077%
|
| Price: | Par
|
| Yield: | 5.077%
|
| Spread: | 272 bps over Government of Canada benchmark
|
| Pricing date: | June 8
|
| Settlement date: | June 13
|
| Ratings: | Standard & Poor's: BBB+
|
| DBRS: A
|
| Distribution: | Canada
|
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