In the middle of a hostile takeover bid, Calgary utility Enmax Corp. has raised $300-million of debt.
Enmax has a $5.20-a-share friendly offer on the table for Cordero - the deadline on a $192-million takeover was extened on Friday - while rival Ember Resources is offering a cash-and-shares offer it values at $5.35 a share.
Enmax is also building a new 1,000 megamatt natural gas-fired generating station in Calgary, so it has all sorts of reasons for raising cash. But a big bond financing done during a takeover can only kindle speculation that Enmax may improve its offer.
The new debentures were sold in a private placement by RBC Dominion Securities and CIBC World Markets. Enmax sold the debt with a 6.15 per cent coupon and priced it to yield 220 basis points over the comparable government of Canada bond.