By Cristal Cody
Prospect News, Dec. 2 - Shaw Communications Inc. sold an upsized C$900 million in two tranches of senior notes (DBRS: BBB/Baa3/BBB-) on Thursday, an informed source said.
The notes were upsized from C$800 million.
A C$500 million tranche of 5.5% notes due Dec. 7, 2020 priced at 99.635 to yield 5.548%.
The bonds priced in line with guidance of a spread of 235 basis points over the Government of Canada benchmark bond.
A C$400 million tranche, which was upsized from C$300 million, was a reopening of the company's 6.75% bonds due Nov. 9, 2039. The bonds priced at 97.356 to yield 6.963%, or a spread of 330 bps over the Canadian government benchmark. The tranche was talked in the 330 bps area.
TD Securities Inc. and Scotia Capital Inc. were the bookrunners. CIBC World Markets Inc. and RBC Capital Markets Corp. were the co-managers.
Proceeds will be used to repay debt incurred to complete the acquisition of Canwest Global Communications Corp.'s television assets and other refinancing.
Calgary, Alta.-based Shaw Communications provides internet, phone and cable television services.
| Issuer: | Shaw Communications Inc.
|
| Amount: | C$900 million, increased from C$800 million
|
| Securities: | Senior notes
|
| Bookrunners: | TD Securities Inc., Scotia Capital Inc.
|
| Co-managers: | CIBC World Markets Inc., RBC Capital Markets Corp.
|
| Pricing date: | Dec. 2
|
| Settlement date: | Dec. 7
|
| Ratings: | DBRS: BBB
|
| Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Distribution: | Canada
|
|
|
| Notes due 2020
|
| Amount: | C$500 million
|
| Maturity: | Dec. 7, 2020
|
| Coupon: | 5.5%
|
| Price: | 99.635
|
| Yield: | 5.548%
|
| Spread: | 235 bps over Canadian government benchmark
|
| Call feature: | 57.5 bps over Canadian government benchmark
|
| Change-of-control put: | 101%
|
| Price talk: | 235 bps over Canadian government benchmark
|
|
|
| Notes due 2039
|
| Amount: | C$400 million reopening
|
| Maturity: | Nov. 9, 2039
|
| Coupon: | 6.75%
|
| Price: | 97.356
|
| Yield: | 6.963%
|
| Spread: | 330 bps over Canadian government benchmark
|
| Call feature: | 70 bps over Canadian government benchmark
|
| Change-of-control put: | 101%
|
| Price talk: | 330 bps over Canadian government benchmark
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
