UBC Completes Debenture Offering

On November 29, 2001, the University of British Columbia (UBC) completed an offering of $125 million unsecured series A debentures to institutional investors. The offering was substantially oversubscribed. The series A debentures are rated Aa3 by Moody’s and AA- by Standard & Poor’s. The series A debentures are unsecured and have a 30-year term, maturing on December 1, 2031. They bear interest at the rate of 6.65 per cent per annum, calculated and payable semi-annually, not in advance. They were priced to yield an effective annual return of 6.67 per cent, which was only 80 basis points (0.80 per cent) over the yield on comparable Government of Canada 30-year bonds. The series A debentures were issued pursuant to a trust indenture; Computershare Trust Company of Canada is the trustee.

Clark, Wilson was legal advisor to UBC with a team that included Brock Johnston and Herb Ono. The financial agents for UBC were RBC Capital Markets Inc. as lead agent, and included CIBC World Markets Inc. and Scotia Capital Inc. Herb Dodd of Farris, Vaughan, Wills & Murphy, assisted by Erinn Broshko, represented the financial agents.