DBRS reports that they have:
today assigned a rating of “A” with a Stable trend to the following TransCanada PipeLines Limited (TCPL) new debt issuance:
(1) Proposed $500 million 3.65% unsecured medium-term notes maturing on November 15, 2021.
(2) Proposed $250 million 4.55% unsecured medium-term notes maturing on November 15, 2041.
The issues are expected to settle on November 15, 2011.
The new debt will rank equally, except as to sinking funds, with all of TCPL’s existing and future senior unsecured debt. Net proceeds from the offering will be used to repay indebtedness and for general corporate purposes.
It’s odd that DBRS considers these to be “proposed” issues: the WSJ says it’s not only been done, but that the offering raised $250-million more than the minimum amount targetted and notes:
It also raised C$250 million from an offering of long bonds maturing November 2041. The issue was priced at 184 basis points over the Government of Canada 2041 benchmark to yield 4.587%. The bonds carry a coupon of 4.55%
TCA has two issues of preferred shares outstanding, TCA.PR.X and TCA.PR.Y, both PerpetualPremiums, both with a par value of $50, and both with annual dividends of $2.80, or 5.6%. Sadly, both are trading at levels of about $53, making the YTW scenario a call in the near term, so a comparison to long bonds is of dubious value.
By way of contrast, non-preferred-share-issuing Encana issued in USD at 5.15%:
DBRS has today assigned a rating of A (low) with a Negative trend to the following Encana Corporation (Encana) new debt issuance:
(1) Proposed $600 million 3.9% senior unsecured notes maturing November 15, 2021.
(2) Proposed $400 million 5.15% senior unsecured notes maturing November 15, 2041.
The issues are expected to settle on November 14, 2011.
The new debt will rank equally with all of Encana’s existing and future senior unsecured debt. Net proceeds from the offering will be used to pay down commercial paper indebtedness and for general corporate purposes.
Notes:
All figures in U.S. dollars unless otherwise noted
This entry was posted on Wednesday, November 9th, 2011 at 11:46 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
TCA Issues Long Paper at 4.587%
DBRS reports that they have:
It’s odd that DBRS considers these to be “proposed” issues: the WSJ says it’s not only been done, but that the offering raised $250-million more than the minimum amount targetted and notes:
TCA has two issues of preferred shares outstanding, TCA.PR.X and TCA.PR.Y, both PerpetualPremiums, both with a par value of $50, and both with annual dividends of $2.80, or 5.6%. Sadly, both are trading at levels of about $53, making the YTW scenario a call in the near term, so a comparison to long bonds is of dubious value.
By way of contrast, non-preferred-share-issuing Encana issued in USD at 5.15%:
This entry was posted on Wednesday, November 9th, 2011 at 11:46 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.