Central 1 Credit Union sells C$270 million; deal pipeline grows; Eldorado Gold on tap

By Cristal Cody

Prospect News, Nov. 13 - Canadian deal activity following the long holiday weekend centered on an upsized offering from Central 1 Credit Union, which sold C$270 million of two-year senior floating-rate notes on Tuesday, according to an informed source.

New issuance in the corporate and municipal sectors is expected over the week, including from Canada Housing Trust, the City of Toronto and Ainsworth Lumber Co. Ltd.

"Nothing yet," one bond source said of the day's pricing action.

Eldorado Gold Corp. started a roadshow on Monday for an offering of $500 million of eight-year senior notes that are expected to price at the end of the week, a market source said.

An offering from Omers Realty Corp. for C$420 million in two tranches of Centennial Place senior secured bonds (DBRS: A provisional) also is in the pipeline.

Bonds traded mostly flat on the day. The markets in Canada and the United States were closed on Monday for holidays.

The Markit CDX Series 18 North American investment-grade index ended unchanged on Tuesday at a spread of 107 basis points.

The Markit CDX Series 18 North American high-yield index inched lower to 97.84 from 97.85.

Government bonds saw slight gains going out. Canada's 10-year note yield fell 3 bps to 1.69%. The yield on the 30-year bond closed 2 bps lower at 2.29%.

Central 1 sells C$270 million

The new offering of C$270 million of two-year senior floating-rate notes that Central 1 Credit Union (/A+/DBRS: A) sold on Tuesday priced at par to yield one-month CDOR plus 55 bps, according to an informed source.

The deal was upsized from C$200 million.

CIBC World Markets Inc. and RBC Capital Markets LLC were joint lead managers. Co-managers were Casgrain & Co. Ltd., TD Securities Inc. and Desjardins Securities Inc.

Vancouver, B.C.-based Central 1 Credit Union is the central financial facility and trade association for the credit unions in British Columbia and Ontario.

Eldorado Gold on tap

Eldorado Gold expects to sell a $500 million offering of eight-year senior notes on Friday. The company held an investor call on Tuesday, a market source said.

A roadshow began on Monday and will run through Friday.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Bank of America Merrill Lynch are the banks on the proposed Rule 144A and Regulation S for life deal.

The notes will be non-callable for four years.

The Vancouver, B.C.-based gold producer plans to use proceeds from the offering to fund mine development, to repay the company's revolving credit facility and for general corporate purposes.

Omers Realty offering eyed

An offering from Omers Realty for C$420 million in two tranches of Centennial Place senior secured bonds (DBRS: A provisional) is in the pipeline for November, according to a bond source.

The deal includes C$210 million of series A bonds due 2022 and C$210 million of series B bonds due 2017.

RBC Capital Markets LLC is the bookrunner.

The bonds are secured by Centennial Place, an office complex built in 2010 in downtown Calgary, Alta.

Proceeds will be used to repay intercompany debt.

The office and retail property owner is a subsidiary of Canadian pension fund Omers Administration Corp.

Paul A. Harris and Aleesia Forni contributed to this review

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.