Transaction|July 12, 2010
Canada Post completes C$1 billion long-term debt issue
Torys acted as counsel to Canada Post, working with its Assistant General Counsel, Robert Fabes. The Torys team included Aaron Emes and Jon Reay (corporate/securities), Adam Delean and Vanessa Kee (debt financing).
On July 12, 2010, Canada Post Corporation announced the completion of its successful inaugural public debt issue. It included two series of bonds: a C$500 million Series 1, 30-year bond with an interest rate of 4.36% and a C$500 million Series 2, 15-year bond priced with an interest rate of 4.08%.
The debt offering was underwritten by a syndicate of dealers co-led by TD Securities Inc. and RBC Capital Markets. The syndicate also included BMO Capital Markets, Scotia Capital Markets, CIBC World Markets, National Bank Financial and Desjardins Securities Inc.
The net proceeds of the offering will be used primarily to finance the company's modernization program. 'Postal Transformation' is a multi-year investment in new facilities, equipment and systems that will enable Canada Post to protect and enhance service to Canadians, increase its competitiveness, improve working conditions and safety for employees, and improve the financial sustainability of the company. This plan is expected to generate C$250 million in annual cost savings by 2017.
Canada Post, headquartered in Ottawa, ON, is a government-owned company that delivers more than 11.5 billion pieces of mail to approximately 14 million Canadian addresses each year.
Further information can be found on Canada Post's website.
The debt offering was underwritten by a syndicate of dealers co-led by TD Securities Inc. and RBC Capital Markets. The syndicate also included BMO Capital Markets, Scotia Capital Markets, CIBC World Markets, National Bank Financial and Desjardins Securities Inc.
The net proceeds of the offering will be used primarily to finance the company's modernization program. 'Postal Transformation' is a multi-year investment in new facilities, equipment and systems that will enable Canada Post to protect and enhance service to Canadians, increase its competitiveness, improve working conditions and safety for employees, and improve the financial sustainability of the company. This plan is expected to generate C$250 million in annual cost savings by 2017.
Canada Post, headquartered in Ottawa, ON, is a government-owned company that delivers more than 11.5 billion pieces of mail to approximately 14 million Canadian addresses each year.
Further information can be found on Canada Post's website.