By Cristal Cody
Prospect News, March 31 - Arrow Lakes Power Corp. priced C$350 million 5.516% series B senior amortizing bonds (A2///DBRS: A) due April 5, 2041 at par on Thursday, an informed source said.
The bonds priced at a spread of 177 basis points versus the Canadian bond curve, compared to talk of 180 bps over the curve.
CIBC World Markets Inc. and Scotia Capital Inc. were lead managers. Co-managers were RBC Capital Markets Corp. and TD Securities Inc.
The bonds have a Canada call at 44 bps over the government benchmark.
Proceeds will be used to repay existing debt, to fund reserves and to pay a special dividend to the company's owners. The dividend will be used to fund a new hydroelectric generation project.
The company operates a hydroelectric generation station near Castlegar, B.C., and is co-owned by Columbia Power Corp. and CBT Arrow Lakes Power Development Corp., a subsidiary of Columbia Basin Trust.
| Issuer: | Arrow Lakes Power Corp.
|
| Amount: | C$350 million
|
| Maturity: | April 5, 2041
|
| Securities: | Series B senior amortizing bonds
|
| Bookrunners: | CIBC World Markets Inc., Scotia Capital Inc.
|
| Co-managers: | RBC Capital Markets Corp., TD Securities Inc.
|
| Coupon: | 5.516%
|
| Price: | Par
|
| Yield: | 5.516%
|
| Spread: | 177 bps over Canadian bond curve
|
| Call feature: | 44 bps over government benchmark
|
| Pricing date: | March 31
|
| Settlement date: | April 5
|
| Ratings: | Moody's: A2
|
| DBRS: A
|
| Distribution: | Canada
|
| Price talk: | 180 bps over Canadian bond curve
|
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