An Athabasca Oil Corp. operation.Lenny Lane
Athabasca Oil Corp. has cut the size of a planned high-yield bond offering by a quarter from a Canadian record $600-million to $450-million, and offering a higher interest rate to lure investors.
Athabasca had been seeking an interest rate in the 7 per cent range for the offering, which would have been a very attractive level for the company. (See this Streetwise column from Thursday) Alas, it appears the details were not so attractive for investors. As suggested by Streetwise Thursday, the terms were a little aggressive given the risk.
Offering details making the rounds on Friday morning for the deal say the company is now seeking $450-million at a coupon of 7.5 per cent. Final terms will be set at noon Toronto time.
GMP Securities and TD Securities are leading the sale.