By Cristal Cody
Tupelo, Miss., Nov. 13 – Inter Pipeline Ltd. priced C$700 million of 6.625% fixed-to-floating rate subordinated notes due Nov. 19, 2079 (BBB-//DBRS: BB) on Wednesday at par to yield a spread of 507 basis points over the Government of Canada bond curve, according to a market source and a news release.
The issue will reset on Nov. 19, 2029 to the Bankers’ Acceptance rate plus 490 bps. The notes will reset again on Nov. 19, 2049 at the BA rate plus 565 bps.
BMO Nesbitt Burns Inc., National Bank Financial Inc. and TD Securities Inc. were the bookrunners.
Inter Pipeline plans to use the proceeds to fund capital projects, to repay debt under its revolving credit facility and for other general corporate purposes.
The petroleum transportation, natural gas liquids processor and bulk liquid storage company is based in Calgary, Alta.
| Issuer: | Inter Pipeline Ltd.
|
| Amount: | C$700 million
|
| Maturity: | Nov. 19, 2079
|
| Securities: | Fixed-to-floating rate subordinated notes
|
| Bookrunners: | BMO Nesbitt Burns Inc., National Bank Financial Inc. and TD Securities Inc.
|
| Coupon: | 6.625%; resets Nov. 19, 2029 to Bankers’ Acceptance rate plus 490 bps; resets Nov. 19, 2049 to BA rate plus 565 bps
|
| Price: | Par
|
| Yield: | 6.625%
|
| Spread: | 507 bps over government of Canada bond curve
|
| Pricing date: | Nov. 13
|
| Settlement date: | Nov. 19
|
| Ratings: | S&P: BBB-
|
| DBRS: BB
|
| Distribution: | Canada
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