By Sheri Kasprzak
New York, Nov. 22 - Potash Corp. of Saskatchewan Inc. priced $1 billion of seven- and 30-year notes (Baa1/A-/) to fund a planned $2 billion share buyback on Monday, said a term sheet.
The deal included $500 million of seven-year 3.25% senior notes and $500 million of 30-year 5.625% notes.
The spread on the seven-year notes came in at Treasuries plus 122 basis points after being talked Monday at Treasuries plus 130 bps. The spread on the 30-year notes was Treasuries plus 152 bps after being talked at Treasuries plus 160 bps.
The seven-year notes priced at 99.652 to yield 3.306%, and the 30-year notes priced at 98.602 to yield 5.723%.
The seven-year notes feature a make-whole call at any time at Treasuries plus 20 bps, and the 30-year notes also feature a make-whole call at Treasuries plus 25 bps.
The joint bookrunners for the sale were Bank of America Merrill Lynch, Goldman Sachs & Co., Morgan Stanley & Co. Inc. and Scotia Capital Inc. The co-managers were BMO Nesbitt Burns Inc., HSBC Securities (USA) Inc., Jefferies & Co. Inc., Rabo Securities USA Inc., UBS Securities LLC, CIBC World Markets Corp. and Mitsubishi UFJ Securities (USA) Inc.
News of the $2 billion share buyback came last week when BHP Billiton Ltd. scrapped its anticipated $39 billion hostile takeover of Potash.
Potash is a fertilizer and related industrial and feed products company based in Saskatoon, Sask.
| Issuer: | Potash Corp. of Saskatchewan Inc.
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Goldman Sachs & Co., Morgan Stanley & Co. Inc. and Scotia Capital (USA) Inc.
|
| Co-managers: | BMO Nesbitt Burns Inc., HSBC Securities (USA) Inc., Jefferies & Co. Inc., Rabo Securities USA Inc., UBS Securities LLC, CIBC World Markets Corp. and Mitsubishi UFJ Securities (USA) Inc.
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
| Pricing date: | Nov. 22
|
| Settlement date: | Nov. 30
|
|
|
| Seven-year notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 1, 2017
|
| Coupon: | 3.25%
|
| Price: | 99.652
|
| Yield: | 3.306%
|
| Spread: | Treasuries plus 122 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
|
|
| 30-year notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 1, 2040
|
| Coupon: | 5.625%
|
| Price: | 98.602
|
| Yield: | 5.723%
|
| Spread: | Treasuries plus 152 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
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