By Cristal Cody
Prospect News, Nov. 15 - CU Inc. priced C$125 million 40-year debentures at par to yield 4.947%, or a spread of 126 basis points over the Government of Canada 5% 2037 benchmark bond, on Monday, a source said.
The company sold the debentures on tight end of original guidance of 129 bps.
RBC Dominion Securities Inc., BMO Nesbitt Burns Inc. and TD Securities Inc. were the bookrunners.
Proceeds will be used to finance capital expenditures, to repay existing debt and for general corporate purposes of ATCO Electric Ltd.
CU Inc., a subsidiary of Alberta-based Canadian Utilities Ltd., is a holding company whose principal operating subsidiaries are ATCO Electric and ATCO Gas and Pipelines Ltd.
| Issuer: | CU Inc.
|
| Amount: | C$125 million
|
| Maturity: | Nov. 18, 2050
|
| Securities: | Debentures
|
| Bookrunners: | RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., TD Securities Inc.
|
| Coupon: | 4.947%
|
| Price: | Par
|
| Yield: | 4.947%
|
| Spread: | 126 bps over Government of Canada benchmark bond
|
| Pricing date: | Nov. 15
|
| Settlement date: | Nov. 18
|
| Distribution: | Canada
|
| Price talk: | 129 bps over Government of Canada benchmark bond
|
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