By Cristal Cody
Tupelo, Miss., Jan. 8 - AltaGas Ltd. sold C$300 million of medium-term notes (/BBB/DBRS: BBB) in two tranches on Wednesday, according to an informed source.
AltaGas priced C$200 million of 4.4% notes due March 15, 2024 at 99.94 to yield 4.408%, or a spread of 167.7 basis points versus the Government of Canada bond benchmark.
In the second tranche, the company priced C$100 million of 5.16% notes due Jan. 13, 2044 at 99.879 to yield 5.168%. The long bonds priced with a spread of 195 bps over the Government of Canada benchmark.
CIBC World Markets Inc. and National Bank Financial Inc. were the joint bookrunners.
The 10-year notes are redeemable prior to Dec. 15, 2023 in whole or in part at the option of the company at the greater of par and the Canada Yield Price and on or after Dec. 15, 2023 in whole at par plus accrued and unpaid interest.
The long bonds are redeemable prior to July 1, 2043 in whole or in part at the greater of par and the Canada Yield Price and on or after July 13, 2043 in whole at par plus accrued and unpaid interest.
AltaGas, a Calgary, Alta.-based energy company, plans to use the proceeds to pay down existing debt and for general corporate purposes.
| Issuer: | AltaGas Ltd.
|
| Amount: | C$300 million
|
| Securities: | Medium-term notes
|
| Bookrunners: | CIBC World Markets Inc. and National Bank Financial Inc.
|
| Co-managers: | BMO Nesbitt Burns Inc., RBC Dominion Securities Inc., Scotia Capital Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Beacon Securities Ltd., J.P. Morgan Securities Canada Inc., Merrill Lynch Canada Inc. and Macquarie Capital Markets Canada Ltd.
|
| Pricing date: | Jan. 8
|
| Settlement date: | Jan. 13
|
| Ratings: | Standard & Poor's: BBB
|
| DBRS: BBB
|
| Distribution: | Canada
|
|
|
| 10-year notes
|
| Amount: | C$200 million
|
| Maturity: | March 15, 2024
|
| Coupon: | 4.4%
|
| Price: | 99.94
|
| Yield: | 4.408%
|
| Spread: | 167.7 bps versus Government of Canada bond benchmark
|
| Call feature: | Before Dec. 15, 2023 at the greater of par and the Canada Yield Price and on or after Dec. 15, 2023 at par plus accrued and unpaid interest
|
|
|
| 30-year notes
|
| Amount: | C$100 million
|
| Maturity: | Jan. 13, 2044
|
| Coupon: | 5.16%
|
| Price: | 99.879
|
| Yield: | 5.168%
|
| Spread: | 195 bps versus Government of Canada bond benchmark
|
| Call feature: | Before July 1, 2043 at the greater of par and the Canada Yield Price and on or after July 13, 2043 at par plus accrued and unpaid interest
|
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