Pretty crazy story coming out of Calgary/Canada. The first syndicated bond deal to fail in Canadian history was caused by a reported modeling error.
I would hate to be the banker(s) responsible for this. Apparently the company (TC Energy) tried to spin it as a "structuring issue" before it got leaked that there was a substantial error in the model. Does anyone else in Canada or elsewhere have more details to share?
For anyone wondering, this was a bond for an indigenous group to buy a stake in a major pipeline. The indigenous groups get a loan to buy their equity with some support from the government so there is a big emphasis on the underlying asset needing to be able to support the bond. It sounds like a lot more of bespoke deal than a usual issuance.
Sorry cant post the link
Based on the most helpful WSO content, here's what you need to know about the historic bond deal failure in Calgary:
If anyone has more details or insights, especially from within Canada, it would be valuable to share.
Sources: Any Canadians in real estate finance on WSO?, Is Calgary the Next Financial Powerhouse of the World?, CANADIAN 2018 Investment Banking Summer Analyst mini Thread, Canadian Trying To Summer at London, TN Visa success/failures
bump
It’s Canada so not that crazy
So true lol. This is hilarious, failed Canadian bond issuance. My friend, I had a worse day last week when I ran out of zyns during a 3-hr QoE DD call.
Lol they have finance in Canada? Imagine getting put on BofA's Calgary project finance desk. That'd be so cheeks. Just doing site visits of little neighborhood hockey rinks that need repairing all day.
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