APA details first Canadian bond sale: C$300 million seven-year notes

By Cristal Cody

Prospect News, June 22 - APA Group said in a statement on Friday that the proceeds from the company's first debt offering in Canada will be used to repay existing loans drawn under its current revolving bank facilities, support ongoing investment in the growth of infrastructure assets and acquire Hastings Diversified Utilities Fund as well as for general corporate purposes.

APA's borrowing entity APT Pipelines Ltd. (Baa2/BBB/) sold C$300 million of 4.245% medium-term notes due July 24, 2019 in Canada on Thursday at 99.997 to yield 4.246%, or 276.3 basis points over the Government of Canada benchmark.

The principal and interest obligations have been hedged into Australian dollar obligations under the terms of cross-currency interest rate swap transactions, with coupons payable semiannually in Australian dollars at a fixed rate of 6.75% per annum.

The notes were sold under APA's European medium-term note program.

Scotia Capital Inc. was the bookrunner and RBC Dominion Securities acted as joint lead arranger. HSBC Securities (Canada) Inc. and TD Securities Inc. were co-managers.

Sydney-based APA Group, which is made up of the Australian Pipeline Trust and the APT Investment Trust, is Australia's natural gas infrastructure company.

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