By Andrea Heisinger
New York, Aug. 22 - Arizona Public Service Co. sold an upsized $300 million of 5.05% 30-year senior bonds on Monday to yield Treasuries plus 170 basis points, according to an FWP filing with the Securities and Exchange Commission.
The deal size was increased from $250 million. The notes were sold at the tight end of guidance in the 175 bps area, plus or minus 5 bps, a source said.
The bonds (Baa2/BBB/BBB) were sold at 99.326 to yield 5.094%.
The securities have a make-whole call at Treasuries plus 25 bps until March 1, 2041 and are callable afterward at par.
Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, UBS Securities LLC and Wells Fargo Securities LLC were the bookrunners.
Co-managers were Ramirez & Co., Inc., SL Hare Capital Inc. and Williams Capital Group LP.
Proceeds are being used to pay a portion of the $400 million of 6.375% notes due on Oct. 15 at maturity.
The electric subsidiary of Pinnacle West Capital Corp. is based in Phoenix.
| Issuer: | Arizona Public Service Co.
|
| Issue: | Senior notes
|
| Amount: | $300 million, increased from $250 million
|
| Maturity: | Sept. 1, 2041
|
| Bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, UBS Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | Ramirez & Co., Inc., SL Hare Capital Inc., Williams Capital Group LP
|
| Coupon: | 5.05%
|
| Price: | 99.326
|
| Yield: | 5.094%
|
| Spread: | Treasuries plus 170 bps
|
| Call: | Make-whole at Treasuries plus 25 bps until March 1, 2041, after at par
|
| Trade date: | Aug. 22
|
| Settlement date: | Aug. 25
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
| Price talk: | 175 bps area, plus or minus 5 bps
|
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