By Cristal Cody
Prospect News, July 28 – Reliance LP priced C$200 million of 4.075% seven-year senior secured notes at par in a private placement offering, an informed source said.
The company sold the notes due Aug. 2, 2021 (/BBB/DBRS: BBB) with a spread of 230 basis points over the interpolated Government of Canada bond curve.
RBC Dominion Securities Inc. and CIBC World Markets Inc. were the lead managers.
The notes are callable at the Government of Canada bond yield plus 57.5 bps.
Reliance plans to use the proceeds to repay existing debt under its senior secured credit facility.
The Ontario-based water heater rental and heating and air conditioning service company is a subsidiary of Reliance Intermediate Holdings LP.
| Issuer: | Reliance LP
|
| Amount: | C$200 million
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| Maturity: | Aug. 2, 2021
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| Securities: | Senior secured notes
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| Bookrunners: | RBC Dominion Securities Inc. and CIBC World Markets Inc.
|
| Co-managers: | Scotia Capital Inc., Laurentian Bank Securities, Inc. and Desjardins Securities Inc.
|
| Coupon: | 4.075%
|
| Price: | Par
|
| Yield: | 4.075%
|
| Spread: | 230 bps over interpolated Government of Canada bond curve
|
| Call feature: | Government of Canada bond yield plus 57.5 bps
|
| Pricing date: | July 25
|
| Settlement date: | Aug. 1
|
| Ratings: Standard & Poor’s: BBB
|
| DBRS: BBB
|
| Distribution: | Canada private placement
|
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