Skip to main content

GMP Capital Inc.'s former CEO Kevin Sullivan, left, and current CEO and president Harris Fricker.

Darren Calabrese/darren calabrese The Globe and Mail

GMP Capital's T purchase of a New York-based bond business is starting to do what the brokerage said it would.

Russel Metals has always been a good client for GMP Capital, hiring the brokerage firm to lead equity offerings and convertible debenture sales.

However, when it came to raising money in the bond market for clients like Russel, GMP wasn't a big player. That's one of the reasons that GMP went out and bought New York-based bond dealer Miller Tabak Roberts in a bid to become a firm that could also offer clients the ability to place bond offerings.

Story continues below advertisement

Thursday, GMP and Royal Bank of Canada's RBC Dominion Securities led a syndicate that did a bought deal of high-yield debt from Russel , and resold the bonds to investors.

Demand was strong enough that GMP and the others in the syndicate upsized the deal to $300-million from $250-million. There were a significant number of orders from New York for the Canadian-dollar denominated issue, according to people familiar with the transaction.

Report an error Licensing Options
Comments are closed

We have closed comments on this story for legal reasons. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.