By Cristal Cody
Tupelo, Miss., Sept. 17 – Union Gas Ltd. sold C$450 million of medium-term note debentures (/BBB+/DBRS: A) in a two-part offering that closed on Thursday, according to a market source.
Union Gas priced C$200 million of 3.19% debentures due Sept. 17, 2025 at 99.957 to yield 3.195%. The series 13 debentures priced with a spread of 170 basis points over the interpolated Government of Canada bond curve.
The company reopened its series 12 debentures due June 2, 2044 to price C$250 million of the 4.2% notes at 98.29 to yield 4.304%. The debentures priced with a reopening spread of 208 bps over the Government of Canada benchmark.
Union Gas originally sold C$250 million of the June 2, 2044 debentures on May 28, 2014 at 99.932 to yield 4.204%, and a spread of 142 bps over the government benchmark. The total outstanding is C$500 million.
CIBC World Markets Inc. was the bookrunner for the deal.
Proceeds from the offering will be used for the repayment of short-term debt, capital expenditures and general corporate purposes.
Union Gas is a Chatham, Ont.-based natural gas storage, transmission and distribution company.
| Issuer: | Union Gas Ltd.
|
| Amount: | C$450 million
|
| Securities: | Medium-term note debentures
|
| Bookrunner: | CIBC World Markets Inc.
|
| Co-managers: | BMO Nesbitt Burns Inc., Scotia Capital Inc., TD Securities Inc.
|
| Pricing date: | Sept. 14
|
| Settlement date: | Sept. 17
|
| Ratings: | Standard & Poor’s: BBB+
|
| DBRS: A
|
| Distribution: | Canada
|
|
|
| Series 13 debentures
|
| Amount: | C$200 million
|
| Maturity: | Sept. 17, 2025
|
| Coupon: | 3.19%
|
| Price: | 99.957
|
| Yield: | 3.195%
|
| Spread: | 170 bps over interpolated Government of Canada bond curve
|
|
|
| Series 12 debentures
|
| Amount: | C$250 million reopening
|
| Maturity: | June 2, 2044
|
| Coupon: | 4.2%
|
| Price: | 98.29
|
| Yield: | 4.304%
|
| Spread: | 208 bps over Government of Canada benchmark
|
| Total outstanding: | C$500 million
|
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