By Cristal Cody
Prospect News, Jan. 9 - Daimler Canada Finance Inc. (A3/A-/DBRS: A) sold C$500 million in two tranches of notes on Wednesday, according to an informed bond source.
In the first tranche, the company priced C$400 million, upsized from C$300 million, of 2.23% notes due April 18, 2016 at par to yield a spread of 89 basis points over the Government of Canada bond curve. The notes priced on the tight end of guidance of 92 bps, plus or minus 3 bps, over the curve.
Daimler Canada also sold C$100 million of floating-rate notes due July 16, 2015 at par to yield 58 bps over the three-month Canadian Dealer Offered Rate.
Scotia Capital Inc., Bank of America Merrill Lynch, CIBC World Markets Inc. and TD Securities Inc. were the lead managers.
The Montreal-based company is the Canadian financing arm for German automaker Daimler AG.
| Issuer: | Daimler Canada Finance Inc.
|
| Amount: | C$500 million
|
| Securities: | Fixed- and floating-rate notes
|
| Bookrunners: | Scotia Capital Inc., Bank of America Merrill Lynch, CIBC World Markets Inc., TD Securities Inc.
|
| Pricing date: | Jan. 9
|
| Settlement date: | Jan. 16
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
| DBRS: A
|
| Distribution: | Canada
|
|
|
| Notes due 2016
|
| Amount: | C$400 million, upsized from C$300 million
|
| Maturity: | April 18, 2016
|
| Securities: | Fixed-rate notes
|
| Coupon: | 2.23%
|
| Price: | Par
|
| Yield: | 2.23%
|
| Spread: | 89 bps over Government of Canada bond curve
|
| Price talk: | 92 bps, plus or minus 3 bps
|
|
|
| Notes due 2015
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| Amount: | C$100 million
|
| Maturity: | July 16, 2015
|
| Securities: | Floating-rate notes
|
| Coupon: | 58 bps over three-month CDOR
|
| Price: | Par
|
| Yield: | 58 bps over three-month CDOR
|
|
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