(Bloomberg) -- Videotron Ltd.’s C$800 million ($604 million) of bonds rose in its first day of trading as the largest high-yield bond in the Canadian bond market got a warm reception from investors.

The notes, which were priced at par Tuesday, are being quoted at about 100.5 cents, according to Industrial Alliance data on Wednesday. The deal was oversubscribed around three times, according to people familiar with the matter.

Videotron’s deal is the third junk-rated senior unsecured loonie bond sale after Cominar Real Estate Investment Trust and Kruger Packaging Holdings priced transactions earlier this year. While Videotron was able to double the size of its deal from C$400 million, Stelco Holdings Inc., a Canadian company rated five steps below than Videotron, had to pull a U.S. dollar sale yesterday.

“Videotron is perceived as investment-grade quality trading at high-yield spreads,” said Sue McNamara, at Beutel Goodman & Co., which oversees C$42 billion of assets. “They have not been in the Canadian market since 2015.”

S&P Global Ratings grades Videotron at BB+, or one step below investment grade, while Moody’s Investors Service has it at the equivalent rating, Ba1. The transaction was placed with 63 buyers and fills were between 10% and 15%, according people familiar with communications provided by deal arrangers to investors. The 4.5% bonds mature in 2030.

Companies such as Russel Metals Inc., Cascades Inc. and Parkland Fuel Corp, which have callable debt, are companies investors may expect to follow suit, said Dhruv Mallick, a high-yield portfolio manager at Leith Wheeler Investment Counsel Ltd. Air Canada may be another company on investors’ radars, he said.

Toronto-Dominion Bank, Bank of Montreal, Royal Bank of Canada and Scotiabank were the bookrunners of the deal, Bloomberg data show. Videotron is the largest high-yield bond issue out of the Canadian market, Bank of Montreal analysts said in a note to investors Tuesday.

A representative for Videotron’s parent company Quebecor Inc. did not return a call and e-mailed request for comment.

--With assistance from Rizal Tupaz and Boris Korby.

To contact the reporters on this story: Esteban Duarte in Toronto at eduarterubia@bloomberg.net;Paula Sambo in Toronto at psambo@bloomberg.net

To contact the editors responsible for this story: Nikolaj Gammeltoft at ngammeltoft@bloomberg.net, ;David Scanlan at dscanlan@bloomberg.net, Christopher DeReza

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