Reuters has reported:
Westcoast Energy on Tuesday sold C$300 million ($297 million) of notes in two parts, according to a term sheet seen by Reuters.
The sale consisted of C$150 million ($149 million) 10-year notes, due Oct. 28, 2021. The notes have a 3.883 percent coupon rate and were priced at par to yield 157.4 basis points over the Canadian government benchmark.
The sale also included C$150 million ($149 million) of 30-year notes, due Oct. 28, 2041, with a coupon rate of 4.791 percent and were priced at par to yield 182 basis points over the Canadian government benchmark.
Westcoast Energy Inc is a unit of Spectra Energy .
The investment dealer arms of Bank of Nova Scotia, and Canadian Imperial Bank of Commerce were the bookrunning managers of the sale.
The DBRS rating is A(low):
DBRS has today assigned a rating of A (low) with a Stable trend to the following Westcoast Energy Inc. (Westcoast) new debt issuance:
(1) Proposed $150 million of 3.883% unsecured Medium Term Notes (Notes) maturing October 28, 2021.
(2) Proposed $150 million of 4.791% Notes maturing October 28, 2041.
The issues are expected to settle on October 28, 2011.
The Notes will rank equally with all of Westcoast’s other senior unsecured indebtedness. Net proceeds from the issue will be used for general corporate purposes, which may include repayment of outstanding indebtedness, and financing capital expenditures and investments of Westcoast.
This can be compared with Westcoast’s preferred issues, W.PR.H and W.PR.J, both PerpetualDiscounts, currently trading a little under par to yield about 5.60%, which is equivalent to about 7.28% at the standard equivalency factor of 1.3x. Hence, the Seniority Spread for this issuer is about 250bp.
This entry was posted on Thursday, October 27th, 2011 at 12:35 am and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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Westcoast Issues Long Term Paper at 4.791%
Reuters has reported:
The DBRS rating is A(low):
This can be compared with Westcoast’s preferred issues, W.PR.H and W.PR.J, both PerpetualDiscounts, currently trading a little under par to yield about 5.60%, which is equivalent to about 7.28% at the standard equivalency factor of 1.3x. Hence, the Seniority Spread for this issuer is about 250bp.
This entry was posted on Thursday, October 27th, 2011 at 12:35 am 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.