New Issue: Ontario prices $2.5 billion 2.4% five-year bonds to yield mid-swaps plus 42 bps

By Cristal Cody

Tupelo, Miss., Feb. 1 – The Province of Ontario sold $2.5 billion of 2.4% five-year bonds on Wednesday at 99.752 to yield 2.453%, according to a market source and an FWP filing with the Securities and Exchange Commission.

The bonds (Aa2/A+/AA-/AA low) priced with a spread of mid-swaps plus 42 basis points, or 49.35 bps over Treasuries, on the tight side of guidance.

The notes were talked to price in the mid-swaps plus 44 bps area.

The lead managers were BMO Capital Markets Corp., HSBC Bank plc, Morgan Stanley & Co. International plc and TD Securities (USA) LLC.

Proceeds from the sale will be used for general provincial purposes.

Issuer:	Province of Ontario
Amount:	$2.5 billion
Description:	Bonds
Maturity:	Feb. 8, 2022
Underwriters:	BMO Capital Markets Corp., HSBC Bank plc, Morgan Stanley & Co. International plc and TD Securities (USA) LLC (lead); CIBC World Markets Corp., National Bank of Canada Financial Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc.
Coupon:	2.4%
Price:	99.752
Yield:	2.453%
Spread:	Mid-swaps plus 42 bps, or Treasuries plus 49.35 bps
Price guidance:	Mid-swaps plus 44 bps area
Trade date:	Feb. 1
Settlement date:	Feb. 8
Ratings:	Moody’s: Aa2
	S&P: A+
	Fitch: AA-
	DBRS: AA (low)
Distribution:	SEC registered

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