By Cristal Cody
Tupelo, Miss., April 1 - PSP Capital Inc. sold C$700 million of fixed-rate and floating-rate medium-term notes (Aaa/AAA/DBRS: AAA) in two tranches on Tuesday, according to an informed source.
The company sold C$200 million of series 6 floating-rate notes due April 4, 2016 flat at the three-month Canadian Dealer Offered Rate.
PSP Capital also priced C$500 million of 3.29% series 7 fixed-rate notes due April 4, 2024 at 99.949 to yield 3.296%. The 10-year notes priced with a spread of 81.4 basis points versus the Government of Canada benchmark.
TD Securities Inc. and RBC Dominion Securities Inc. were the lead managers.
The notes are unconditionally and irrevocably guaranteed by the Public Sector Pension Investment Board.
PSP Capital, the principal financing arm of the Ottawa, Ont.-based Public Sector Pension Investment Board, plans to use the proceeds to repay maturing commercial paper.
| Issuer: | PSP Capital Inc.
|
| Guarantor: | Public Sector Pension Investment Board
|
| Amount: | C$700 million
|
| Securities: | Medium-term notes
|
| Bookrunners: | TD Securities Inc. and RBC Dominion Securities Inc.
|
| Co-managers: | BMO Capital Markets Corp., CIBC World Markets Inc., Scotia Capital Inc., Casgrain & Co. Ltd., Desjardins Securities Inc. and Laurentian Bank Securities, Inc.
|
| Pricing date: | April 1
|
| Settlement date: | April 4
|
| Ratings: Moody's: Aaa
|
| Standard & Poor's: AAA
|
| DBRS: AAA
|
| Distribution: | Canada
|
|
|
| Series 6 notes
|
| Amount: | C$200 million
|
| Maturity: | April 4, 2016
|
| Securities: | Floating-rate notes
|
| Spread: | Three-month CDOR
|
|
|
| Series 7 notes
|
| Amount: | C$500 million
|
| Maturity: | April 4, 2024
|
| Securities: | Fixed-rate notes
|
| Coupon: | 3.29%
|
| Price: | 99.949
|
| Yield: | 3.296%
|
| Spread: | 81.4 bps over Government of Canada benchmark
|
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