Cineplex opens Canadian junk bond market with $575 million sale
BNN Bloomberg
Canada’s largest theater chain has attracted orders for more than three times the amount of bonds it was offering on Thursday, to clinch the first Canadian junk bond sale of the year.
Cineplex Inc. sold $575 million (US$426.9 million) of high-yield notes maturing in 2029 to yield 7.625 per cent, according to people familiar with the matter. That’s at the tight end of a guidance range that had already been revised down twice from initial price talk, said the people, who asked not to be identified as the details are private.
A representative for Cineplex didn’t immediately reply to a request for comment.
The deal drew as many as 61 buyers — more than twice the typical number of participants for a high-yield offering, the people said. The strong demand for the securities comes amid an issuance dry spell so far this year in Canada’s junk bond market. That meant Cineplex was also able to upsize its deal from an initial target of $550 million.
