By Cristal Cody
Prospect News, Sept. 17 - Standard Life Assurance Co. of Canada said on Monday that it sold C$400 million of 3.938% 10-year fixed- to floating-rate subordinated debentures at par.
The debentures (/expected A/) priced at a spread of 245 basis points over the Government of Canada benchmark, tighter than guidance of 250 bps, plus or minus 5 bps, an informed bond source said.
The new issue is set at a fixed rate of 3.938% for five years and then will switch to a rate of 210 bps over three-month CDOR.
RBC Capital Markets Corp. and BMO Capital Markets Corp. were the lead managers. Co-managers were Bank of America Merrill Lynch and Casgrain & Co.
Proceeds will be used for general corporate purposes and, subject to regulatory approval, may be used to repay an existing internal debt to Standard Life plc.
Standard Life Assurance Co. of Canada is a subsidiary of Edinburgh, Scotland-based Standard Life plc, a long-term savings and investment company.
| Issuer: | Standard Life Assurance Co. of Canada
|
| Amount: | C$400 million
|
| Maturity: | Sept. 21, 2022
|
| Securities: | Subordinated debentures
|
| Bookrunners: | RBC Capital Markets Corp., BMO Capital Markets Corp.
|
| Co-managers: | Bank of America Merrill Lynch, Casgrain & Co.
|
| Coupon: | 3.938%
|
| Price: | Par
|
| Yield: | 3.938%
|
| Spread: | 245 bps over Government of Canada benchmark
|
| Resets: | After five years to rate of 210 bps over three-month CDOR
|
| Pricing date: | Sept. 14
|
| Settlement date: | Sept. 21
|
| Rating: | Standard & Poor's: Expected A
|
| Distribution: | Canada
|
| Price talk: | 250 bps, plus or minus 5 bps
|
| Marketing: | Roadshow
|
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