Aimia sells C$200 million five-year notes; Tuscany Drilling plans roadshow; bonds firm

By Cristal Cody

Prospect News, Nov. 19 - Aimia Inc. tapped the Canadian debt markets on Monday with an offering of C$200 million of 4.35% five-year senior secured notes, while new issuance over the remainder of the week is expected to be light, sources said.

"We're hearing a couple rumors of an issue or two and then they'll shut it down for the U.S. Thanksgiving," one source said.

Calgary, Alta.-based Tuscany International Drilling Inc. plans to start a roadshow later in the week for a U.S. dollar-denominated offering of senior notes, according to a New York-based trader.

In the Canadian secondary market, Aimia's bonds tightened 5 basis points, a source said.

Athabasca Oil Corp.'s 7½% senior secured second-lien notes due 2017 rose 50 cents on Monday, sources said.

In other trading, EnerCare Inc.'s 4.3% senior notes due Nov. 30, 2017 traded unchanged but held on to last week's gains, a bond source said.

National Grid plc's new 2.9% bonds due 2019 traded in about 1 bp.

Canadian U.S. dollar-denominated bank paper traded flat to slightly weaker, a market source said.

Toronto-Dominion Bank's U.S. dollar paper ended unchanged on the day.

Bank of Nova Scotia's 2.55% notes due 2017 (Aa1/AA-/) traded 5 bps wider to 46 bps bid on Monday.

Bank of Montreal's 2.5% notes due 2017 (Aa2/A+/) eased 1 bp to 60 bps bid, the source said.

Corporate bonds traded better overall on Monday.

The Markit CDX Series 18 North American investment-grade index firmed 7 bps to a spread of 103 bps.

The Markit CDX Series 18 North American high-yield index climbed to 98.55 from 97.31 on Friday.

Aimia sells C$200 million

Aimia sold C$200 million of 4.35% five-year senior secured notes at 99.781 to yield 4.399% on Monday, a syndicate source said.

The notes due Jan. 22, 2018 (/BBB-DBRS: BBB) priced at a spread of 305 bps over the Canadian bond curve, compared to guidance in the 310 bps area, plus or minus 5 bps.

TD Securities Inc., CIBC World Markets Inc. and RBC Capital Markets Corp. were the lead managers.

Aimia was last in the Canadian debt markets with an offering on May 14, 2012. The company sold C$250 million of 5.6% seven-year senior secured notes due May 17, 2019 at 99.926 to yield 5.613%, or a spread of 395 bps over the Canadian bond curve, tighter than talk of 400 bps plus or minus 5 bps.

Montreal-based Aimia operates loyalty service management programs, including Aeroplan Canada, for flight points on Air Canada and Star Alliance carriers.

Tuscany plans roadshow

Tuscany International Drilling plans to start a roadshow on Thursday for a U.S. dollar-denominated offering of senior notes (expected ratings /B/B+), according to a New York-based trader.

Credit Suisse and Scotia Capital are the joint bookrunners.

The roadshow for the Rule 144A and Regulation S deal wraps up on Nov. 27.

The oilfield services provider plans to use the proceeds, together with funds drawn from an amended an upsized revolver, to repay term loans under its credit agreement.

Athabasca up

A Canadian bond source said C$6.5 million of Athabasca Oil's 7½% senior secured second-lien notes due 2017 (/B/DBRS: B) traded on Monday at 99.5.

"We did go back from a high trade from probably 101, down 2 [bps] overall, but it's up 50 cents today," a bond source at another desk said.

The notes were seen at a low 99 in the afternoon, a trader said.

"It's marginally under 99 today," the trader said.

A trader on another desk saw the notes at 97½ bid, 98½ offered.

The company sold C$550 million of the five-year notes at par to yield 7½% on Nov. 9.

Athabasca Oil is a Calgary, Alta.-based based oil sands developer.

EnerCare holds tighter

EnerCare's 4.3% senior notes due Nov. 30, 2017 traded unchanged on Monday since tightening to 280 bps bid after the notes priced on Thursday, a bond source said.

The company sold C$250 million of the five-year senior notes at a spread of 298 bps.

EnerCare is a Toronto-based energy conservation products and services provider.

National Grid firmer

National Grid's 2.9% notes due Nov. 26, 2019 traded in about 1 bp to 145 bps bid, a bond source said on Monday.

National Grid sold C$400 million of the seven-year bonds at a spread of 146 bps over the Government of Canada benchmark on Thursday.

London-based National Grid operates electric and gas utilities in the United Kingdom and the United States.

Christine Van Dusen and Paul A. Harris contributed to this review

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