Rockpoint Gas finalizes $400 million five-year secured notes at 7%; pricing Friday

By Paul A. Harris

Portland, Ore., Feb. 2 – Rockpoint Gas Storage Canada Ltd. finalized pricing on its $400 million offering of senior secured first-lien notes due March 2023 (BB-/B), according to a syndicate source.

Final pricing sets the coupon at 7%, at the tight end of the 7% to 7¼% coupon talk.

The reoffer price is 97.368, rich to price talk of 97 (the deal was announced early in the week with an anticipated discount of 4 points).

The yield is 7 5/8%, 12.5 bps beneath the tight end of the 7¾% to 8% yield talk.

Timing remains unchanged, with books set to remain open until noon ET on Friday, the source said.

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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