TMX Group closes C$1.1 billion debenture private placement in Canada

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TMX Group debenture placement

Highlights

TMX Group completed a C$1.1 billion private placement, issuing C$250 million Series K, C$400 million Series L, and C$450 million Series M debentures.
The 2028, 2033, and 2036 tranches were oversubscribed by 4.2, 3.5, and 4.0 times respectively, and carry an 'AA (Low)' rating with Stable Trend from DBRS.
Net proceeds will repay outstanding indebtedness and fund general purposes, with distribution led by National Bank of Canada Capital Markets and TD Securities to eligible Canadian buyers only.

Offering structure and funding use

According to TMX Group, the financing comprises C$250 million of 3.862% Series K senior unsecured debentures due Sept. 26, 2028, C$400 million of 4.571% Series L notes due Sept. 22, 2033, and C$450 million of 4.904% Series M notes due Sept. 23, 2036.

TMX Group says the 2028 tranche is about 4.2 times oversubscribed, the 2033 tranche about 3.5 times oversubscribed, and the 2036 tranche about 4.0 times oversubscribed. The debentures are direct senior unsecured and unsubordinated obligations of the company, ranking pari passu with its other senior unsecured and unsubordinated debt.

The company says the debentures carry an "AA (Low)" credit rating with a Stable Trend from DBRS Limited. Net proceeds from the placement are being used to repay a portion of outstanding indebtedness and for general corporate purposes.

Distribution terms and market context

The offering is made exclusively to eligible buyers in Canadian provinces through a syndicate of agents led by National Bank of Canada Capital Markets and TD Securities. The syndicate also includes RBC Capital Markets, BMO Capital Markets, CIBC Capital Markets, Scotiabank, Barclays, Canaccord Genuity, Casgrain & Company Limited, Cedar Leaf Capital Inc., and Citigroup Global Markets Canada Inc.

TMX Group says the sale is completed on a private placement basis under exemptions from prospectus requirements under applicable provincial securities laws, and the debentures are not qualified for sale to the public in those jurisdictions. The company also says the securities are not being offered in the U.S. and have not been, and will not be, registered under U.S. securities laws, limiting any U.S. sale to transactions that qualify for an exemption.

Our earlier report on the surge in AI-related borrowing explained how heavy issuance tied to data centers, chips, and broader AI infrastructure is reshaping the U.S. investment-grade bond market and making investors more selective. We noted that AI-linked issuers often face wider spreads due to concerns about the scale and unpredictability of future supply, while demand remains stronger for scarcer, non-AI deals that are frequently oversubscribed.

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