(Bloomberg) -- The final investment-grade bonds expected to be sold before the US presidential election may come from north of the border as Canadian telecom Videotron Ltd. is the lone issuer to tap the market Monday.
The Quebecor Inc. unit sold a long 10-year note, according to a person with knowledge of the matter, who asked not to be identified as the details are private. The note will yield 1.4 percentage point above comparable Treasuries, down from initial talk of around 1.6 percentage point.
Proceeds from the offering are expected to be used to to pay down a portion of the term loan from the acquisition of Freedom Mobile Inc. in 2023, S&P Global Ratings said in a statement.
Videotron’s debt rating was upgraded to investment grade by S&P and Moody’s Ratings in May. The company issued C$1 billion ($720 million) of debt in June.
A representative for Videotron did not immediately respond to a request for comment.
The deal is the lone investment-grade deal Monday — and possibly for the week — as companies wait out the results of the US presidential race. Even if the race is called quickly, more uncertainty stems from the latest Federal Reserve policy meeting starting Wednesday.
Bank of America Corp. and JPMorgan Chase & Co. are managing the bond sale, the person said.
--With assistance from Michael Gambale.
(Updates with price details in second paragraph.)
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