By Cristal Cody
Prospect News, June 8 - ScotiaPlaza, or SP Limited Partnership and SP1 Limited Partnership, sold C$650 million of 3.21% amortizing first mortgage bonds at par on Friday, an informed bond source said.
The bonds due June 15, 2019 (DBRS: A rating) priced at a spread of 180 basis points over the Government of Canada benchmark.
Scotia Capital Inc. and TD Securities Inc. were the bookrunners.
The SP and SP1 Limited Partnerships are subsidiaries of Dundee Real Estate Investment Trust and H&R REIT. The REITs announced in May they purchased Bank of Nova Scotia's Scotia Plaza complex in Toronto for C$1.27 billion and will use proceeds from the bond sale to help fund the acquisition, which is expected to close on June 20.
Toronto-based Dundee has a two-thirds stake in the property, and Downsview, Ont.-based H&R REIT holds a one-third interest.
| Issuer: | ScotiaPlaza/ SP Limited Partnership/SP1 Limited Partnership
|
| Amount: | C$650 million
|
| Maturity: | June 15, 2019
|
| Securities: | Amortizing first mortgage bonds
|
| Bookrunners: | Scotia Capital, TD Securities
|
| Coupon: | 3.21%
|
| Price: | Par
|
| Yield: | 3.21%
|
| Spread: | 180 bps over Government of Canada benchmark
|
| Pricing date: | June 8
|
| Ratings: | DBRS: A
|
| Distribution: | Canada
|
| Price talk: | Rate set no higher than 3.45%
|
| Marketing: | Roadshow
|
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