By Cristal Cody
Tupelo, Miss., Sept. 24 – Ontario Teachers’ Finance Trust (Aa1/AA+) priced a $3 billion Rule 144A and Regulation S two-part offering of senior notes on Wednesday, according to a market source.
The trust sold $1.5 billion of 0.375% three-year notes at mid-swaps plus 24 basis points, or a Treasuries plus 32.5 bps spread.
Price guidance was at the mid-swaps plus 26 bps area, tighter than initial talk in the mid-swaps plus 28 bps area.
A $1.5 billion offering of 1.25% 10-year notes priced on top of guidance at mid-swaps plus 62 bps, or a Treasuries plus 63.75 bps spread.
Initial price talk was at the mid-swaps plus 65 bps area.
Barclays, J.P. Morgan Securities, LLC, RBC Capital Markets, LLC and TD Securities (USA) LLC were the bookrunners.
The trust held fixed income investor calls ahead of the deal.
Ontario Teachers’ Finance Trust is a Toronto-based financing arm of the Ontario Teachers’ Pension Plan Board.
| Issuer: | Ontario Teachers’ Finance Trust
|
| Amount: | $3 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, J.P. Morgan Securities, LLC, RBC Capital Markets, LLC and TD Securities (USA) LLC
|
| Trade date: | Sept. 24
|
| Ratings: | Moody’s: Aa1
|
| S&P: AA+
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Fixed income investor calls
|
|
|
| Three-year notes
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| Amount: | $1.5 billion
|
| Maturity: | Sept. 29, 2023
|
| Coupon: | 0.375%
|
| Spread: | Mid-swaps plus 24 bps, or Treasuries plus 32.5 bps
|
| Price talk: | Mid-swaps plus 26 bps area; initial talk at mid-swaps plus 28 bps area
|
|
|
| 10-year notes
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| Amount: | $1.5 billion
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| Maturity: | Sept. 27, 2030
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| Coupon: | 1.25%
|
| Spread: | Mid-swaps plus 62 bps, or Treasuries plus 63.75 bps
|
| Price talk: | Mid-swaps plus 62 bps; initial talk at mid-swaps plus 65 bps area
|
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