By Cristal Cody
Tupelo, Miss., Oct. 2 - Hydro One Inc. (Aa3/A+/DBRS: A) priced an upsized C$1,185,000,000 of medium-term notes in two tranches on Wednesday, according to a syndicate source.
The company brought C$750 million of 2.78% notes due Oct. 9, 2018 at 99.995 to yield 2.781%, or a spread of 88 basis points over the interpolated Government of Canada bond curve. The bonds priced at the tight end of guidance of 90 bps, plus or minus 2 bps, versus the curve.
The company launched a minimum C$500 million offering of the series 28 notes, according to a preliminary pricing supplement on Wednesday with the Securities and Exchange Commission.
The five-year notes are redeemable at the Government of Canada bond yield plus 22 bps.
In the second tranche, Hydro One sold C$435 million of 4.59% notes due Oct. 9, 2043 at 99.984 to yield 4.591%. The 30-year notes priced at a spread of 149 bps over the Government of Canada benchmark, at the tight end of guidance of 151 bps, plus or minus 2 bps.
The company launched a minimum C$300 million offering of the series 29 medium-term notes, according to an SEC filing.
The 30-year notes are redeemable at the Government of Canada bond yield plus 37 bps and at par six months prior to maturity.
BMO Nesbitt Burns Inc., CIBC World Markets Inc. and RBC Dominion Securities Inc. were joint lead managers.
The company has applied to the list the notes for trading on the New York Stock Exchange.
Toronto-based Hydro One, which provides electricity in the Province of Ontario, plans to use the proceeds for general corporate purposes.
| Issuer: | Hydro One Inc.
|
| Amount: | C$1.19 billion
|
| Securities: | Medium-term notes
|
| Bookrunners: | BMO Nesbitt Burns Inc., CIBC World Markets Inc., RBC Dominion Securities Inc.
|
| Co-managers: | National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Desjardins Securities Inc., HSBC Securities (Canada) Inc., Casgrain & Co. Ltd., Laurentian Bank Securities Inc.
|
| Pricing date: | Oct. 2
|
| Settlement date: | Oct. 9
|
| Ratings: | Moody's: Aa3
|
| Standard & Poor's: A+
|
| DBRS: A
|
| Distribution: | Canada, Rule 144A, Regulation S, private placement
|
|
|
| Series 28 notes
|
| Amount: | C$750 million
|
| Maturity: | Oct. 9, 2018
|
| Coupon: | 2.78%
|
| Price: | 99.995
|
| Yield: | 2.781%
|
| Spread: | 88 bps over bond curve
|
| Call feature: | 22 bps plus Government of Canada yield
|
| Price talk: | 90 bps, plus or minus 2 bps
|
|
|
| Series 29 notes
|
| Amount: | C$435 million
|
| Maturity: | Oct. 9, 2043
|
| Coupon: | 4.59%
|
| Price: | 99.984
|
| Yield: | 4.591%
|
| Spread: | 149 bps plus Government of Canada benchmark
|
| Call feature: | 37 bps plus Government of Canada yield; par call six months prior to maturity
|
| Price talk: | 151 bps, plus or minus 2 bps
|
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