By Cristal Cody
Prospect News, June 27 - OPB Finance Trust priced C$500 million in two tranches of series A-B debentures (/AAA/DBRS: AA) on Wednesday after it completed a roadshow on Tuesday, an informed bond source said.
In the first tranche, the trust priced C$350 million of 3.89% debentures due July 4, 2042 at 99.93 to yield 3.894%, or a spread of 157 basis points over the Government of Canada benchmark. The bonds were launched at C$300 million on guidance of 160 bps, plus or minus 3 bps.
The 30-year debentures have a Canadian call at 39 bps over the Government of Canada benchmark.
In the second tranche, the trust sold C$150 million, upsized from C$100 million, of 3.87% debentures due July 4, 2062 at 99.912 to yield 3.874%, or a spread of 155 bps over the government benchmark. The deal was talked at 160 bps, plus or minus 3 bps.
The 50-year debentures have a Canadian call at 38.5 bps over the Government of Canada benchmark.
The debentures are guaranteed by the Ontario Pension Board.
TD Securities Inc. and RBC Capital Markets Corp. were joint lead managers. CIBC World Markets Inc. was a co-manager.
Proceeds will be used to support the Ontario Pension Board's private market investments.
The OPB Finance Trust is a new financing arm of the Ontario Pension Board.
| Issuer: | OPB Finance Trust
|
| Guarantor: | Ontario Pension Board
|
| Amount: | C$500 million
|
| Securities: | Debentures
|
| Bookrunners: | TD Securities Inc., RBC Capital Markets Corp.
|
| Co-manager: | CIBC World Markets Inc.
|
| Pricing date: | June 27
|
| Settlement date: | July 4
|
| Ratings: | Standard & Poor's: AAA
|
| DBRS: AA
|
| Distribution: | Canada, private placement
|
| Marketing: | Roadshow
|
|
|
| Tranche 1
|
| Amount: | C$350 million
|
| Maturity: | July 4, 2042
|
| Coupon: | 3.89%
|
| Price: | 99.93
|
| Yield: | 3.894%
|
| Spread: | 157 bps over Government of Canada benchmark
|
| Call feature: | 39 bps plus Government of Canada benchmark
|
| Price talk: | 160 bps, plus or minus 3 bps
|
|
|
| Tranche 2
|
| Amount: | C$150 million
|
| Maturity: | July 4, 2062
|
| Coupon: | 3.87%
|
| Price: | 99.912
|
| Yield: | 3.874%
|
| Spread: | 155 bps over Government of Canada benchmark
|
| Call feature: | 38.5 bps plus Government of Canada benchmark
|
| Price talk: | 160 bps, plus or minus 3 bps
|
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