By Cristal Cody
Prospect News, Nov. 23 - AltaGas Ltd. sold an upsized C$175 million of 4.6% medium-term notes (/BBB//BBB) due Jan. 15, 2018 on Tuesday, according to a source.
The notes priced at 99.931 to yield 4.61%, or 196.5 basis points over the Canadian benchmark bond. The deal was upsized from C$150 million.
Guidance on the notes was talked at 190 bps plus or minus 5 bps over the relevant Government of Canada bond curve and priced 5 bps tighter at 185 bps versus the curve.
The notes feature a Canada call at 46 bps over the Canadian benchmark bond.
National Bank Financial and Scotia Capital Inc. were the lead managers. BMO Capital Markets Corp., CIBC World Markets Inc., HSBC Securities (Canada) Inc., RBC Capital Markets Corp. and TD Securities Inc. were the co-managers.
Proceeds will be used to reduce outstanding debt and for general corporate purposes.
AltaGas is an energy company based in Calgary, Alta.
| Issuer: | AltaGas Ltd.
|
| Amount: | C$175 million
|
| Maturity: | Jan. 15, 2018
|
| Securities: | Medium-term notes
|
| Bookrunners: | National Bank Financial, Scotia Capital Inc.
|
| Co-managers: | BMO Capital Markets Corp., CIBC World Markets Inc., HSBC Securities (Canada) Inc., RBC Capital Markets Corp., TD Securities Inc.
|
| Coupon: | 4.6%
|
| Price: | 99.931
|
| Yield: | 4.61%
|
| Spread: | 196.5 bps over Canadian benchmark
|
| Call feature: | 46 bps over benchmark
|
| Pricing date: | Nov. 23
|
| Settlement date: | Nov. 26
|
| Ratings: | DBRS: BBB
|
| Standards & Poor's: BBB
|
| Distribution: | Canada
|
| Price talk: | 190 bps plus or minus 5 bps versus the bond curve
|
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