Published on 10/2/2013 in the Prospect News Canadian Bonds Daily and Prospect News Investment Grade Daily.
New Issue: TransCanada Pipelines sells $1.25 billion of 10-, 30-year senior notes
By Aleesia Forni
Virginia Beach, Oct. 2 - TransCanada Pipelines Ltd. priced $1.25 billion of senior notes (A3/A-/A) in two tranches on Wednesday, according to an informed source and a filing with the Securities and Exchange Commission.
Both tranches priced at the tight end of talk.
There was $625 million of 3.75% notes due 2023 sold at 99.371 to yield 3.826%, or Treasuries plus 120 basis points.
A $625 million issue of 5% notes due 2043 was priced with a spread of Treasuries plus 130 bps. Pricing was at 99.291 to yield 5.046%.
Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC were the joint bookrunners.
Proceeds will be used for general corporate purposes and to repay short-term debt.
The natural gas and oil pipeline and storage company is based in Calgary, Alta.
| Issuer: | TransCanada Pipelines Ltd.
|
| Issue: | Senior notes
|
| Amount: | $1.25 billion
|
| Joint bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC
|
| Co-managers: | Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mitsubishi UFJ Securities (USA) Inc., BofA Merrill Lynch, Mizuho Securities USA Inc., UBS Securities LLC
|
| Trade date: | Oct. 2
|
| Settlement date: | Oct. 7
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
| Fitch: A
|
|
|
| Notes due 2023
|
| Amount: | $625 million
|
| Maturity: | Oct. 16, 2023
|
| Coupon: | 3.75%
|
| Price: | 99.371
|
| Yield: | 3.826%
|
| Spread: | Treasuries plus 120 bps
|
| Price talk: | Treasuries plus 125 bps area
|
| Make-whole call: | Treasuries plus 20 bps until July 16, 2023, then callable at par
|
|
|
| Notes due 2043
|
| Amount: | $625 million
|
| Maturity: | Oct. 16, 2043
|
| Coupon: | 5%
|
| Price: | 99.291
|
| Yield: | 5.046%
|
| Spread: | Treasuries plus 130 bps
|
| Price talk: | Treasuries plus 135 bps area
|
| Make-whole call: | Treasuries plus 20 bps until April 16, 2043, then callable at par
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
