By Cristal Cody
Prospect News, Dec. 9 - Teranet Holdings LP sold an upsized C$1.575 billion in four tranches of senior secured notes (DBRS: BBB//BBB+/) on Thursday, an informed source said.
The sale was upsized from C$1.4 billion. The notes were offered for sale in Canada and in the United States under Rule 144A.
The company sold C$475 million 3.531% notes due Dec. 16, 2015 at par, or a spread of 106.1 basis points over the Government of Canada benchmark bond. The first tranche was upsized from C$400 million and was talked at a 105 bps spread.
Teranet sold the second tranche of C$450 million 4.807% notes due Dec. 16, 2020 at par, or a spread of 156 bps over the Canadian government benchmark. The second tranche also was upsized from C$400 million. The notes were talked at the 150 bps area.
The issuer also sold C$450 million 5.574% bonds due Dec. 17, 2040 priced at par and a spread of 200.1 bps over the Canadian government benchmark. The 30-year bonds were upsized from C$400 million. Guidance was pegged at a spread on the 200 bps area.
Teranet also sold C$200 million 3.27% notes due Dec. 1, 2031 at 99.986 to yield 3.271%. The notes priced at spread of 192.1 bps over the Canadian government benchmark.
The tranche was talked at a spread of 195 bps.
Scotia Capital Inc., BMO Capital Markets Corp. and RBC Capital Markets Corp. were the lead managers. TD Securities Inc., CIBC World Markets Inc. and National Bank Financial Inc. were the co-managers.
Proceeds will be used to repay debt.
Toronto-based Teranet owns the Province of Ontario's electronic land registration system.
| Issuer: | Teranet Holdings LP
|
| Amount: | C$1.575 billion
|
| Securities: | Senior secured notes
|
| Bookrunners: | Scotia Capital Inc., BMO Capital Markets Corp., RBC Capital Markets Corp.
|
| Co-managers: | TD Securities Inc., CIBC World Markets Inc., National Bank Financial Inc.
|
| Pricing date: | Dec. 9
|
| Settlement date: | Dec. 16
|
| Ratings: | DBRS: BBB
|
| Standard & Poor's: BBB+
|
| Distribution: | Canada, Rule 144A
|
|
|
| Notes due 2015
|
| Amount: | C$475 million
|
| Maturity: | Dec. 16, 2015
|
| Coupon: | 3.531%
|
| Price: | Par
|
| Yield: | 3.531%
|
| Spread: | 106.1 bps over Canadian government benchmark
|
| Call feature: | 26 bps
|
| Price talk: | 105 bps area
|
|
|
| Notes due 2020
|
| Amount: | C$450 million
|
| Maturity: | Dec. 16, 2020
|
| Coupon: | 4.807%
|
| Price: | Par
|
| Yield: | 4.807%
|
| Spread: | 156 bps over Canadian government benchmark
|
| Call feature: | 37.5 bps
|
| Price talk: | 150 bps area
|
|
|
| Notes due 2031
|
| Amount: | C$200 million
|
| Maturity: | Dec. 1, 2031
|
| Coupon: | 3.27%
|
| Price: | 99.986
|
| Yield: | 3.271%
|
| Spread: | 192.1 bps over Canadian government benchmark
|
| Price talk: | 195 bps area
|
|
|
| Bonds due 2040
|
| Amount: | C$450 million
|
| Maturity: | Dec. 17, 2040
|
| Coupon: | 5.574%
|
| Price: | Par
|
| Yield: | 5.574%
|
| Spread: | 200.1 bps over Canadian government benchmark
|
| Call feature: | 50 bps
|
| Price talk: | 200 bps area
|
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