By Andrea Heisinger
Omaha, May 12 - Petro-Canada priced $1.5 billion senior unsecured notes (Baa2/BBB/) in two tranches on Monday, an informed source said.
A $600 million tranche of 6.05% 10-year notes priced at 99.829 to yield 6.073%, or Treasuries plus 230 basis points.
A $900 million tranche of 6.8% 30-year notes priced at 99.784 to yield 6.817%, or Treasuries plus 230 bps.
Both tranches have make-whole redemption options of Treasuries plus 35 bps.
The notes priced in line with guidance in the 230 bps area, a source said.
Bookrunners were HSBC Securities Inc., Citigroup Global Markets Inc. and Deutsche Bank Securities Inc.
Proceeds will be used to repay short-term notes payable and debt outstanding under syndicated credit facilities. The balance will be added to working capital or invested in short-term marketable securities.
The oil and gas company is based in Calgary, Alta.
| Issuer: | Petro-Canada
|
| Issue: | Senior unsecured notes
|
| Amount: | $1.5 billion
|
| Bookrunners: | HSBC Securities Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc.
|
| Trade date: | May 12
|
| Settlement date: | May 15
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
|
|
| 10-year tranche
|
| Amount: | $600 million
|
| Maturity: | May 15, 2018
|
| Coupon: | 6.05%
|
| Price: | 99.829
|
| Yield: | 6.073%
|
| Spread: | Treasuries plus 230 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Price talk: | 230 bps area
|
|
|
| 30-year tranche
|
| Amount: | $900 million
|
| Maturity: | May 15, 2038
|
| Coupon: | 6.8%
|
| Price: | 99.784
|
| Yield: | 6.817%
|
| Spread: | Treasuries plus 230 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Price talk: | 230 bps area
|
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