By Cristal Cody
Prospect News, Nov. 16 - Canada Housing Trust (Aaa/AAA/DBRS: AAA) sold C$3.75 billion of Canada Mortgage Bonds in two tranches on Wednesday, according to a bond source.
In the first tranche, the trust priced C$1.75 billion of floating-rate bonds due March 15, 2017 at par to yield the three-month Canadian dealer offered rate plus 20 basis points.
In the second tranche, Canada Housing Trust sold C$2 billion of 2.65% bonds due March 15, 2022 at 99.778 to yield 2.675%, or a spread of 56 bps over the Government of Canada benchmark.
RBC Capital Markets Corp., CIBC World Markets Inc., BMO Capital Markets Corp. and National Bank Financial Inc. were the lead managers.
Canada Housing Trust last came to market in September with a C$5 billion offering of 1.85% five-year fixed-rate notes. They priced at 99.867 to yield 1.877%, or a spread of 44 bps over the Government of Canada benchmark.
Canada Housing Trust is a unit of Canada Mortgage and Housing Corp., which offers financing, mortgage loan insurance and mortgage-backed securities.
| Issuer: | Canada Housing Trust
|
| Amount: | C$3.75 billion
|
| Securities: | Canada Mortgage Bonds
|
| Bookrunners: | RBC Capital Markets Corp., CIBC World Markets Inc., BMO Capital Markets Corp. and National Bank Financial Inc.
|
| Pricing date: | Nov. 16
|
| Settlement date: | Nov. 23
|
| Ratings: | Moody's: Aaa
|
| Standard & Poor's: AAA
|
| DBRS: AAA
|
| Distribution: | Canada
|
|
|
| Tranche 1
|
| Amount: | C$1.75 billion
|
| Maturity: | March 15, 2017
|
| Coupon: | Three-month CDOR plus 20 bps
|
| Price: | Par
|
| Yield: | Three-month CDOR plus 20 bps
|
| Spread: | Three-month CDOR plus 20 bps
|
|
|
| Tranche 2
|
| Amount: | C$2 billion
|
| Maturity: | March 15, 2022
|
| Coupon: | 2.65%
|
| Price: | 99.778
|
| Yield: | 2.675%
|
| Spread: | 56 bps over Government of Canada benchmark
|
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