Rockpoint sets talk for $400 million five-year notes, pricing Friday

By Paul A. Harris

Portland, Ore., Feb. 1 – Rockpoint Gas Storage Canada Ltd. talked its $400 million offering of senior secured first-lien notes due March 2023 (S&P: BB-/Fitch: B) with a 7% to 7¼% coupon at a reoffer price of 97 to yield 7¾% to 8%, a syndicate source said.

Pricing tightened relative to the announced anticipated discount of approximately 4 points.

Books close at noon ET Friday and the notes are set to price thereafter.

Joint bookrunner RBC Capital Markets LLC will bill and deliver. BMO Securities and CIBC World Markets are also joint bookrunners.

The Rule 144A and Regulation S for life notes become callable after two years at par plus the full coupon.

The Calgary, Alta.-based owner and operator of natural gas storage plans to use the proceeds, together with cash on hand, to redeem and retire all of its outstanding 2019 notes and to repay approximately $150 million of outstanding borrowings under its term loan facility.

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