By Cristal Cody
Tupelo, Miss., Nov. 20 – Suncor Energy Inc. priced C$750 million of 3.1% seven-year senior medium-term notes at 99.663 to yield 3.154% in the Canadian primary market late Thursday afternoon, according to an informed source.
The notes due Nov. 26, 2021 (A3/A-/DBRS: A) priced with a spread of 140 basis points over the interpolated Government of Canada bond curve, on the tight side of guidance of 145 bps, plus or minus 5 bps, versus the government benchmark.
CIBC World Markets Inc., RBC Dominion Securities Inc. and TD Securities Inc. were the lead managers.
Suncor Energy plans to use the proceeds to replenish cash balances following the repayment of outstanding debt. The proceeds subsequently will be used to fund the company’s capital program and for general corporate purposes.
Suncor Energy also sold $750 million of U.S. dollar-denominated 10-year notes on Thursday.
The oil and gas company is based in Calgary, Alta.
Issuer: | Suncor Energy Inc.
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Amount: | C$750 million
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Maturity: | Nov. 26, 2021
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Securities: | Senior medium-term notes
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Bookrunners: | CIBC World Markets Inc., RBC Dominion Securities Inc., TD Securities Inc.
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Co-managers: | BMO Nesbitt Burns Inc., Scotia Capital Inc., AltaCorp Capital Inc., Desjardins Securities Inc.
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Coupon: | 3.1%
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Price: | 99.663
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Yield: | 3.154%
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Spread: | 140 bps over interpolated Government of Canada bond curve
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Pricing date: | Nov. 20
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Settlement date: | Nov. 26
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Ratings: | Moody’s: A3
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| Standard & Poor’s: A-
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| DBRS: A
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Distribution: | Canada
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Price talk: | 145 bps, plus or minus 5 bps, over interpolated Government of Canada bond curve
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