By Cristal Cody
Prospect News, April 16 - Lower Mattagami Energy LP sold an upsized C$225 million of 4.175% 40-year senior secured bonds (A2//DBRS: A) at par in a private placement on Monday, according to an informed bond source.
The series 2012-1 bonds due April 23, 2052 priced at a spread of 160 basis points over the Government of Canada benchmark, which was at the tight end of initial guidance of 163 bps, plus or minus 3 bps.
CIBC World Markets Inc. and BMO Capital Markets Corp. were the bookrunners.
The offering was upsized from C$200 million.
The proceeds will be used to refinance outstanding commercial paper notes and/or to pay for existing construction costs incurred by affiliated entity Lower Mattagami LP.
Lower Mattagami Energy was last in the market with a bond offering in 2011. The company raised C$475 million in a two-part private placement sale of senior bonds (A2/DBRS: A) on May 12, 2011. That deal included C$225 million of 4.331% series 2011-3 notes due 2021 at par, or a spread of 111.6 bps over the Government of Canada benchmark, and C$250 million of 5.139% series 2011-4 bonds due 2041 at par, or a spread of 152 bps over the government benchmark.
Lower Mattagami Energy announced last year that it plans C$1.9 billion of project financing to fund the redevelopment and expansion of four hydroelectric generating stations on the lower part of the Mattagami River in northeastern Ontario.
The company operates hydroelectric generators on the Mattagami River and is a partnership of Ontario Power Generation Inc. and LM Energy Inc.
| Issuer: | Lower Mattagami Energy LP
|
| Guarantor: | Lower Mattagami LP
|
| Amount: | C$225 million
|
| Maturity: | April 23, 2052
|
| Securities: | Senior secured bonds
|
| Bookrunners: | CIBC World Markets Inc., BMO Capital Markets Corp.
|
| Coupon: | 4.175%
|
| Price: | Par
|
| Yield: | 4.175%
|
| Spread: | 160 bps over Government of Canada benchmark
|
| Pricing date: | April 16
|
| Settlement date: | April 23
|
| Ratings: | Moody's: A2
|
| DBRS: A
|
| Distribution: | Canada
|
| Price talk: | 163 bps, plus or minus 3 bps
|
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