Published on 11/20/2014 in the Prospect News Canadian Bonds Daily and Prospect News Investment Grade Daily.
New Issue: Suncor Energy prices upsized $750 million 3.6% 10-year notes at 135 bps spread
By Aleesia Forni
Virginia Beach, Nov. 20 – Suncor Energy Inc. sold an upsized $750 million of 3.6% 10-year senior notes (A3/A-//A) on Thursday at Treasuries plus 125 basis points, according to a market source and a supplement filed with the Securities and Exchange Commission.
Pricing was at 99.235 to yield 3.692%.
The notes sold at the tight end of talk.
Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., BNP Paribas Securities Corp. and RBS Securities Inc. were the bookrunners.
Proceeds will be used to replenish the company’s cash balances following the recent repayment of outstanding debt, to fund the company’s capital program and for general corporate purposes.
The energy company is based in Calgary, Alta.
| Issuer: | Suncor Energy Inc.
|
| Amount: | $750 million, upsized from $500 million
|
| Description: | Senior notes
|
| Maturity: | Dec. 1, 2024
|
| Bookrunners: | Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., BNP Paribas Securities Corp., RBS Securities Inc.
|
| Co-managers: | CIBC World Markets Corp., DnB NOR Markets, Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, Mizuho Securities USA Inc., RBC Capital Markets, LLC, Sumitomo Finance International plc, TD Securities (USA) LLC
|
| Coupon: | 3.6%
|
| Price: | 99.235
|
| Yield: | 3.692%
|
| Spread: | Treasuries plus 135 bps
|
| Make-whole call: | Treasuries plus 20 bps prior to Sept. 1, 2024, then callable at par
|
| Trade date: | Nov. 20
|
| Settlement date: | Nov. 25
|
| Ratings: | Moody’s: A3
|
| Standard & Poor's: A-
|
| DBRS: A
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 140 bps area, tightened from Treasuries plus 155 bps area
|
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