DBRS has announced that it:
has today assigned a rating of A (low) with a Stable trend to the prospective issue by Nova Scotia Power Inc. (NSPI) of $300 million, 5.61% medium-term notes, maturing June 15, 2040 (the Notes). The offering is expected to settle on June 15, 2010.
The Notes rank equally with all other unsecured obligations of NSPI and are being issued pursuant to the Short Form Base Shelf Prospectus dated May 21, 2010, as supplemented by the Prospectus Supplement dated June 9, 2010. Proceeds from this issue are expected to be used to repay short-term debt and for general corporate purposes.
NSPI is a wholly owned subsidiary of EMA.
It will be recalled that EMA recently issued EMA.PR.A, a FixedReset paying 4.40%+184.
Direct comparisons between the credits these issues are difficult; NSPI is a subsidiary of EMA, together with the difference in seniority.
Standard & Poor’s rates EMA’s preferreds at BBB- on the global scale and NSPI’s notes at BBB+; as a rough explanation, we can say that there is one notch for the holdco/sub relationship and one for the preferred/senior note relationship (which is much less than would be applied to a bank of the same credit quality).
It will be noticed that TCA recently issued long notes at 6.10% and TRP’s two FixedReset issues, TRP.PR.A and TRP.PR.B, closed last night yielding 4.12% (to call) and 3.95% (to perpetuity) respectively, while TCA’s two PerpetualDiscounts (TCA.PR.X and TCA.PR.Y) yield about 5.90%, down about 17bp from issue time. Make of it what you will!
This entry was posted on Friday, June 11th, 2010 at 8:51 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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EMA Subsidiary NSPI Issues 30-Year Notes at 5.61%
DBRS has announced that it:
NSPI is a wholly owned subsidiary of EMA.
It will be recalled that EMA recently issued EMA.PR.A, a FixedReset paying 4.40%+184.
Direct comparisons between the credits these issues are difficult; NSPI is a subsidiary of EMA, together with the difference in seniority.
Standard & Poor’s rates EMA’s preferreds at BBB- on the global scale and NSPI’s notes at BBB+; as a rough explanation, we can say that there is one notch for the holdco/sub relationship and one for the preferred/senior note relationship (which is much less than would be applied to a bank of the same credit quality).
It will be noticed that TCA recently issued long notes at 6.10% and TRP’s two FixedReset issues, TRP.PR.A and TRP.PR.B, closed last night yielding 4.12% (to call) and 3.95% (to perpetuity) respectively, while TCA’s two PerpetualDiscounts (TCA.PR.X and TCA.PR.Y) yield about 5.90%, down about 17bp from issue time. Make of it what you will!
This entry was posted on Friday, June 11th, 2010 at 8:51 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.