By Cristal Cody
Prospect News, Feb. 7 - Alliance Grain Traders Inc. priced C$125 million of 9% five-year senior secured second-lien notes (/B/DBRS: B) at 99.5 to yield 9.127% in a Rule 144A-, Regulation S-eligible private placement on Thursday, according to syndicate sources.
The issue was talked on Wednesday in the 8¾% yield area.
The notes came at a spread of 764.3 basis points over the Government of Canada benchmark.
Terms were set by early afternoon, and the deal priced after the markets closed.
Scotia Capital Inc., CIBC World Markets Inc. and GMP Securities LP were the lead managers. The co-managers were AltaCorp Capital Inc. and Canaccord Genuity Corp.
The notes are callable at 106.75 on Feb. 14, 2016 and at par on Feb. 14, 2017 and thereafter.
The issue has a 101% change-of-control put.
Proceeds will be used to refinance existing debt.
Regina, Sask.-based Alliance Grain Traders is a pulse and staple food processor and distributor.
| Issuer: | Alliance Grain Traders Inc.
|
| Amount: | C$125 million
|
| Maturity: | Feb. 14, 2018
|
| Securities: | Senior secured second-lien notes
|
| Bookrunners: | Scotia Capital Inc., CIBC World Markets Inc. and GMP Securities LP
|
| Co-managers: | AltaCorp Capital Inc. and Canaccord Genuity Corp.
|
| Coupon: | 9%
|
| Price: | 99.5
|
| Yield: | 9.127%
|
| Spread: | 764.3 bps over Government of Canada benchmark
|
| Call option: | 106.75 on Feb. 14, 2016; par on Feb. 14, 2017 and thereafter
|
| Put option: | 101%
|
| Pricing date: | Feb. 7
|
| Settlement date: | Feb. 14
|
| Ratings: | Standard & Poor's: B
|
| DBRS: B
|
| Distribution: | Rule 144A, Regulation S, Canada private placement
|
| Price talk: | 8¾% yield area
|
| Marketing: | Roadshow
|
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