Inmet Mining, Thompson Creek Metals plan U.S. dollar deals; TransCanada Pipelines cheaper

By Cristal Cody

Prospect News, May 7 - The Canadian bond markets opened the week with announcements of two U.S. dollar-denominated offerings, while activity domestically stayed quiet on Monday, informed bond sources said.

Inmet Mining Corp. started a roadshow on Monday for $1 billion of eight-year senior notes (expected ratings B1/BB-).

Also, Thompson Creek Metals Co., Inc. announced it intends to price $200 million of senior notes due 2019 on Tuesday.

In Canada, activity was light.

"Today's been a quiet day and a slower start to the week," one source said.

Montreal-based Aimia, which operates loyalty service management programs, started a two-day roadshow in Canada on Monday.

The fixed-income roadshow was in Montreal on Monday and will be held in Toronto on Tuesday.

CIBC World Markets Inc., RBC Capital Markets Corp. and TD Securities Inc. are the hosts.

Corporate bonds traded mostly weaker over the day, sources said.

The Markit CDX Series 18 North American investment-grade index eased 4 basis points to a spread of 100 bps.

TransCanada Pipelines Ltd.'s older bonds were active in secondary trading, a market source said.

Canadian government bonds closed lower after choppy trading early in the morning in reaction to the weekend elections in France and Greece.

"It's been a bit of a volatile day, but we're closing pretty much right back to our opening levels," a bond source said. "The initial reactions to the elections over the weekend provided Canadian and U.S. bonds with a pretty solid bid, and that has been gradually unwound over the course of the day."

Europe will continue to dominate the bond markets over the light data week. Domestically, key employment data will be released on Friday.

"That and managing some of the European headlines are going to be the two things to keep an eye on," the source said.

On Monday, Statistics Canada said building permits rose 4.7% in March, following a 7.6% increase in February.

Canada's 10-year note yield ended unchanged at 2.02%. The 30-year bond yield closed flat at 2.54%.

Inmet Mining starts roadshow

Inmet Mining started a roadshow on Monday for a $1 billion offering of eight-year senior notes (expected ratings B1/BB-), according to a market source.

The deal is expected to price on May 15.

Global coordinator J.P. Morgan Securities LLC will bill and deliver. Credit Suisse Securities (USA) LLC is also a global coordinator.

Bank of America Merrill Lynch, Citigroup Global Markets, Morgan Stanley & Co. and RBC Capital Markets are joint bookrunners.

CIBC World Markets and Scotia Capital are co-managers.

The Rule 144A and Regulation S for life notes come with four years of call protection.

The Toronto-based mining company plans to use the proceeds to fund development capital for the Cobre Panama project and for general corporate purposes.

Thompson Creek on tap

Thompson Creek Metals plans to price a $200 million offering of senior notes (confirmed Caa2/expected CCC+) on Tuesday, according to a market source.

JPMorgan, Deutsche Bank Securities Inc. and RBC Capital Markets are the joint bookrunners.

Standard Chartered Bank, SG CIB and UBS Investment Bank are the co-managers.

The notes, which will be registered with the Securities and Exchange Commission, come with four years of call protection.

Proceeds will be used to fund construction of the Mt. Millgan copper-gold mine and for working capital.

The prospective issuer is a mining company based in Vancouver, B.C., and Littleton, Colo.

TransCanada Pipelines trades

TransCanada Pipelines' 6.2% bonds due 2037 traded wider at 152 bps bid on the day, a source said on Monday.

The issue (A2/A-/) priced in a $1 billion offering on Oct. 2, 2007 at a spread of 145 bps over Treasuries.

The natural gas pipeline is based in Calgary, Alta.

Paul A. Harris contributed to this review

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