By Cristal Cody
Prospect News, May 12 - Lower Mattagami Energy LP priced C$475 million in a two-part private placement sale of senior bonds (A2/DBRS: A) on Thursday, an informed source said.
The company sold C$225 million of 4.331% series 2011-3 notes due May 18, 2021 at par, or a spread of 111.6 basis points over the Government of Canada benchmark, tighter than guidance of 114 bps.
The 10-year notes have a call at 22 bps.
In the second tranche, the company sold C$250 million of 5.139% series 2011-4 bonds due May 18, 2041 at par, or a spread of 152 bps over the government benchmark. The bonds were talked at a spread of 154 bps.
The long bonds have a call at 38 bps.
BMO Capital Markets Corp. and CIBC World Markets Inc. were the bookrunners.
Co-managers were National Bank Financial Inc., RBC Capital Markets Corp., Scotia Capital Inc., TD Securities Inc. and HSBC Capital (Canada) Inc.
Proceeds will be used to refinance outstanding commercial paper notes and to fund redevelopment and expansion costs.
The company, part of Ontario Power Generation Inc., is a hydroelectric generator located on the Mattagami River.
| Issuer: | Lower Mattagami Energy LP
|
| Amount: | C$475 million
|
| Securities: | Senior bonds
|
| Bookrunners: | BMO Capital Markets Corp. and CIBC World Markets Inc.
|
| Co-managers: | National Bank Financial Inc., RBC Capital Markets Corp., Scotia Capital Inc., TD Securities Inc. and HSBC Capital (Canada) Inc.
|
| Pricing date: | May 12
|
| Settlement date: | May 17
|
| Ratings: | Moody's: A2
|
| DBRS: A
|
| Distribution: | Canada
|
|
|
| Bonds due 2021
|
| Amount: | C$225 million
|
| Maturity: | May 18, 2021
|
| Coupon: | 4.331%
|
| Price: | Par
|
| Yield: | 4.331%
|
| Spread: | 111.6 bps over Government of Canada benchmark
|
| Call feature: | 22 bps
|
| Price talk: | 114 bps over Government of Canada benchmark
|
|
|
| Bonds due 2041
|
| Amount: | C$250 million
|
| Maturity: | May 18, 2041
|
| Coupon: | 5.139%
|
| Price: | Par
|
| Yield: | 5.139%
|
| Spread: | 152 bps over government benchmark
|
| Call feature: | 38 bps
|
| Price talk: | 154 bps over government benchmark
|
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