Anheuser-Busch InBev, Eagle Credit Card, Ontario price; Trinidad Drilling talks new deal

By Cristal Cody

Prospect News, Dec. 8 - Anheuser-Busch InBev Worldwide Inc. sold C$600 million of Maple bonds in the Canadian market on Wednesday, while Eagle Credit Card Trust priced an upsized C$558 million in two tranches of credit card receivables-backed notes, sources said.

Also, the Province of Ontario sold $1.25 billion of 3.15% seven-year global bonds on Wednesday to yield Treasuries plus 57.5 basis points, according to an FWP filing with the Securities and Exchange Commission.

The notes (Aa1/AA-) priced at 99.707 to yield 3.197%. They were talked at mid-swaps plus 41 bps and priced in line with talk.

The issue is non-callable.

Bank of America Merrill Lynch, CIBC World Markets Corp., TD Securities USA LLC and UBS Securities LLC were the bookrunners.

The year is expected to mark a record for issuance in the Canadian dollar market, a source said.

"Provincial governments have seen a tremendous demand for their paper," the source said. "We've seen a tremendous influx of foreign investor interest in provincial bonds in both Canadian and foreign dollar-denominated currencies."

In Canadian high-yield bonds, Trinidad Drilling Ltd. talked its $450 million offering of eight-year senior notes (B2/BB-) with an 8% to 8¼% yield, according to an informed source.

Elsewhere, Canadian government bonds tracked U.S. Treasuries on Wednesday but fared better.

The Canadian 10-year bond yield fell to 3.262% from 3.29%. The two-year note yield rose to 1.695% from 1.68%.

U.S. Treasuries plunged for a second day on Wednesday, sending the 10-year benchmark note yield to 3.27% from 3.14%. The two-year note yield rose 10 bps to 0.63%.

Anheuser-Busch sells Maples

Anheuser-Busch InBev Worldwide sold C$600 million in a 3.65% Maple bond due Jan. 15, 2016 at 99.961 to yield 3.658%.

The bonds, guaranteed by Belgium parent Anheuser-Busch InBev SA/NV, priced at a spread of 113 bps versus Canadian government bond curve, slightly wider than guidance of a spread of 115 bps.

The offering was upsized from C$500 million.

The Maple bond market includes Canadian dollar-denominated bonds sold by foreign companies.

TD Securities Inc. and Bank of America Merrill Lynch were the bookrunners.

Eagle Credit Card upsized

Eagle Credit Card Trust priced an upsized C$558 million in two tranches of credit card receivables-backed notes (DBRS: AAA) on Wednesday, an informed source said.

The company sold an upsized C$232.5 million of 2.782% series 2010-1 senior notes due Dec. 17, 2013 at par.

The notes, upsized from C$200 million, priced at a spread of 85.1 bps over the Government of Canada benchmark bond. The deal was talked at 78 bps over the Government of Canada benchmark.

In the second tranche, Eagle Credit Card Trust sold an upsized C$325.5 million of 3.474% notes due Dec. 17, 2015 at par, or a spread of 98.2 bps over the Canadian government benchmark. The offering was upsized from C$300 million. The notes were talked at 98 bps spread.

CIBC World Markets Inc. and RBC Dominion Securities Inc. were the lead managers.

Proceeds will be used to finance the purchase of undivided co-ownership interests in the receivables of credit card accounts designated by President's Choice Bank.

Toronto-based Eagle Credit Card Trust manages the credit card receivables from PC Bank, a subsidiary of Loblaw Cos.

Trinidad Drilling sets talk

Canada's Trinidad Drilling talked its $450 million offering of eight-year senior notes (B2/BB-) with an 8% to 8¼% yield on Wednesday, according to an informed source.

The deal is set to price mid-morning on Thursday.

Wells Fargo Securities is the left bookrunner for the Rule 144A and Regulation S for life notes.

RBC Capital Markets and TD Securities are the joint bookrunners.

HSBC and Scotia Capital are the joint lead managers. Daiwa Securities and Comerica Securities are the co-managers.

The notes come with four years of call protection.

The proceeds from the sale will be used to redeem the C$354 million outstanding of 7¾% convertible unsecured subordinated debentures due July 2012 and to repay a portion of the debt outstanding from existing revolving credit facilities and term loans due in 2012.

As part of the sale, the company expects to enter into a new two-part senior secured revolver that expires in December 2014 and includes a C$200 million revolving tranche and US$100 million revolving tranche.

Trinidad Drilling said the purpose of the offering and the new credit facility will be to simplify the company's capital structure by the elimination of the debentures; provide flexibility in the balance sheet through penalty-free debt repayment under the new credit facility over the next four years; extend maturities from 2012 to 2014 and early 2019 and allocate debt between U.S. and Canadian dollars.

Trinidad Drilling is a Calgary, Alta.-based provider of oil and gas drilling equipment.

Catalyst Paper active

A trader said that while Catalyst Paper Corp.'s bonds were lower, "no way was there as much activity as in [Catalyst sector peer] NewPage," whose bonds were seen off multiple points in heavy trading Wednesday on lowered guidance.

The trader saw Richmond, B.C.-based Catalyst's 7 3/8% notes due 2014 down ½ point at 69 bid, 70 offered, although he said there was very little activity there." He saw "a little more" in the way of dealings in its 11% notes due 2016, which ended around 94 bid, down ½ point.

OPTI Canada muted

A trader saw "not much activity and an unchanged to lower tone" in OPTI Canada's bonds.

He quoted the 7 7/8% notes due 2014 ending around 70 bid, calling that "a little lower where they were" previously, "but I'm not seeing much activity."

He pegged the Calgary, Alta.-based oil sands energy producer's 8¼% notes due 2014 also around a 70-71 context, adding that there was "not much there."

Andrea Heisinger and Paul A. Harris contributed to this review

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