Published on 2/19/2015 in the Prospect News Canadian Bonds Daily and Prospect News Investment Grade Daily.
New Issue: North West Redwater prices C$1 billion two-part offering of senior secured bonds
By Cristal Cody
Tupelo, Miss., Feb. 19 – North West Redwater Partnership and subsidiary NWR Financing Co. Ltd. priced C$1 billion of senior secured bonds in a two-part offering, according to an informed source.
The issuers sold C$500 million of 2.1% series C bonds due Feb. 23, 2022 at 99.799 to yield 2.131%. The bonds priced at a spread of 105 basis points versus the interpolated Government of Canada bond curve.
In the second tranche, C$500 million of 3.7% series D bonds due Feb. 23, 2043 priced at 99.637 to yield 3.721%. The bonds priced at a spread of 160 bps over the Government of Canada benchmark.
RBC Dominion Securities Inc. and Scotia Capital Inc. were the lead managers.
Proceeds from the deal will be used to fund construction and repay debt under the credit facility.
North West Redwater Partnership is a Calgary, Alta.-based oil refinery operator.
| Issuer: | North West Redwater Partnership/NWR Financing Co. Ltd.
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| Amount: | C$1 billion
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| Securities: | Senior secured bonds
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| Bookrunners: | RBC Dominion Securities Inc. and Scotia Capital Inc.
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| Co-managers: | CIBC World Markets Inc., J.P. Morgan Securities Canada Inc., BMO Nesbitt Burns Inc., BofA Merrill Lynch, Barclays Capital Canada Inc., TD Securities Inc., Citigroup Global Markets Canada Inc., BNP Paribas (Canada), RBS Capital Markets (Canada) Ltd., Desjardins Securities Inc., National Bank Financial Inc., AltaCorp Capital Inc. and Casgrain & Co. Ltd.
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| Pricing date: | Feb. 18
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| Settlement date: | Feb. 23
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| Ratings: | Moody’s: A3
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| Standard & Poor’s: A-
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| Distribution: | Canada
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| Series C bonds
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| Amount: | C$500 million
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| Maturity: | Feb. 23, 2022
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| Coupon: | 2.1%
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| Price: | 99.799
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| Yield: | 2.131%
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| Spread: | 105 bps versus interpolated Government of Canada bond curve
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| Call feature: | Canadian bond yield plus 26 bps; one-month par call
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| Series D bonds
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| Amount: | C$500 million
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| Maturity: | Feb. 23, 2043
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| Coupon: | 3.7%
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| Price: | 99.637
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| Yield: | 3.721%
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| Spread: | 160 bps over Government of Canada benchmark
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| Call feature: | Canadian bond yield plus 40 bps; six-month par call
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