CIU Issues Long Term Paper at 4.543% & 4.593%

Canadian Utilities has announced:

that it will issue $500,000,000 of 4.543% Debentures maturing on October 24, 2041, at a price of $100.00 to yield 4.543% and $200,000,000 of 4.593% Debentures maturing on October 24, 2061, at a price of $100.00 to yield 4.593%. These issues were sold by BMO Nesbitt Burns Inc., RBC Dominion Securities Inc., TD Securities Inc. and ScotiaCapital Inc. Proceeds from the issue will be used to finance capital expenditures, to repay existing indebtedness, and for other general corporate purposes of ATCO Electric Ltd. and ATCO Gas and Pipelines Ltd.

By way of comparison with the preferred share market …

CIU.PR.A Perpetual-Discount Quote: 24.15 – 24.70

Maturity Type : Limit Maturity
Maturity Date : 2041-10-20
Maturity Price : 23.67
Evaluated at bid price : 24.15
Bid-YTW : 4.80 %

The YTW of 4.80% is equivalent to 6.24% interest at the standard 1.3x equivalency factor, implying that the Seniority Spread for this issuer is about 165bp.

CIU is also the proud issuer of CIU.PR.B and CIU.PR.C, both FixedResets.

Update, 2011-10-24: Debentures rated A(high) by DBRS.

Leave a Reply

You must be logged in to post a comment.