BC Ferries Completes Public Bond Offerings

On October 13, 2004, British Columbia Ferry Services Inc. completed its second public offering of 2004, a $250 million offering of 6.25 per cent senior secured bonds due October 13, 2034. The lead underwriter for the offering was CIBC World Markets Inc. The other underwriters were BMO Nesbitt Burns Inc., RBC Dominion Securities Inc, Scotia Capital Inc. and TD Securities Inc. Net proceeds of the bond offering were used to repay indebtedness and accrued interest owing under BC Ferries’ senior credit facility, and for general corporate purposes.
The offering follows the completion, on May 27, 2004, of BC Ferries’ initial public offering of $250 million aggregate principal amount of 5.74 per cent senior secured bonds due May 27, 2014. The syndicate of underwriters for the initial public offering was also led by CIBC World Markets Inc. and included BMO Nesbitt Burns Inc., RBC Dominion Securities Inc. and TD Securities Inc.
BC Ferries used the net proceeds from the initial public offering, together with drawings of $200 million under a $355 million secured credit facility with a syndicate of Canadian banks, to repay indebtedness owed to the Province of British Columbia.
BC Ferries was represented in-house by William Cottick, vice-president, corporate affairs, general counsel and corporate secretary, and by Byran Gibson, Michael Urbani, Roger Taplin, Michael Birch, Ranjeev Sangra, David Crane and Salman Manki (corporate finance) and Chris Falk (tax) of McCarthy Tétrault LLP.
The underwriters were represented by Herb Dodd and Trevor Scott of Farris. The lenders under the credit facility were represented by David Kee and Neal Wang of Blake, Cassels & Graydon LLP.