By Cristal Cody
Eureka Springs, Ark., May 3 – Arizona Public Service Co. sold $350 million of 3.75% 30-year notes with a spread of 112 basis points over Treasuries on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The notes due (A2/A-/A) priced at 99.713 to yield 3.766%.
Barclays, Citigroup Global Markets Inc., SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC were the bookrunners.
Proceeds will be used to refinance via redemption or cancellation at par debt related to the $12.85 million outstanding of series 2009A Coconino County, Ariz., Pollution Control Corp. pollution control revenue refunding bonds due June 1, 2034, which had a short-term interest rate of 0.49% per annum on Monday.
Proceeds also will be used to refinance via redemption or cancellation at par debt related to the $32 million outstanding of series 2009D Navajo County, Ariz., Pollution Control pollution control revenue refunding bonds due June 1, 2034, which had an interest rate of 5.75% per annum on May 2; and the $32 million of series 2009E Navajo County, Ariz., Pollution Control pollution control revenue refunding bonds due June 1, 2034, which had an interest rate of 5.75% per year on Monday.
In addition, proceeds will be used to replenish cash and/or refinance commercial paper borrowings temporarily used to fund capital expenditures.
Arizona Public Service, an electric utility based in Phoenix, is a subsidiary of Pinnacle West Capital Corp.
| Issuer: | Arizona Public Service Co.
|
| Amount: | $350 million
|
| Maturity: | May 15, 2046
|
| Securities: | Senior notes
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., Wells Fargo Securities, LLC
|
| Co-managers: | BB&T Capital Markets, C.L. King & Associates, Inc., KeyBanc Capital Markets Inc., PNC Capital Markets LLC
|
| Coupon: | 3.75%
|
| Price: | 99.713
|
| Yield: | 3.766%
|
| Spread: | Treasuries plus 112 bps
|
| Call feature: | Make-whole call before Nov. 15, 2045 at Treasuries plus 20 bps; par call thereafter
|
| Pricing date: | May 3
|
| Settlement date: | May 6
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
| Fitch: A
|
| Distribution: | SEC registered
|
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