Published on 3/23/2015 in the Prospect News Canadian Bonds Daily and Prospect News Investment Grade Daily.
New Issue: Potash Corp. prices $500 million of 3% 10-year notes at 115 bps spread
By Aleesia Forni
Virginia Beach, March 23 – Potash Corp. of Saskatchewan Inc. sold $500 million of 3% senior notes due April 1, 2025 during Monday’s session at Treasuries plus 115 basis points, according to a market source and a FWP filed with the Securities and Exchange Commission.
The notes (A3/A-/) priced at 99.52 to yield 3.056%.
Pricing was at the tight end of the Treasuries plus 115 bps to 120 bps guidance. Initial talk was set at 125 bps to 130 bps over Treasuries.
BofA Merrill Lynch, Goldman Sachs & Co., RBC Capital Markets LLC and HSBC Securities (USA) Inc. were the joint bookrunners.
Proceeds will be used for general corporate purposes, which may include the redemption of $500 million of Potash's 3.75% notes maturing on Sept. 30, 2015.
Potash is a fertilizer and related industrial and feed products company based in Saskatoon, Sask.
| Issuer: | Potash Corp. of Saskatchewan Inc.
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| Amount: | $500 million
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| Description: | Senior notes
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| Maturity: | April 1, 2025
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| Bookrunners: | BofA Merrill Lynch, Goldman Sachs & Co., RBC Capital Markets LLC, HSBC Securities (USA) Inc.
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| Co-managers: | BMO Capital Markets Corp., Scotia Capital (USA) Inc., CIBC World Markets Corp., MUFG, Rabo Securities USA, Inc., TD Securities (USA) LLC, Morgan Stanley & Co. LLC, UBS Securities LLC, Credit Agricole Securities (USA) Inc., SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc.
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| Coupon: | 3%
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| Price: | 99.52
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| Yield: | 3.056%
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| Spread: | 115 bps
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| Trade date: | March 23
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| Settlement date: | March 26
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| Make-whole call: | 20 bps prior to Jan. 1, 2025, then callable at par
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| Ratings: | Moody’s: A3
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| Standard & Poor’s: A-
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| Distribution: | SEC-registered
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| Price guidance: | 115 bps to 120 bps, tightened from 125 bps to 130 bps
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