Published on 5/7/2018 in the Prospect News Investment Grade Daily.
New Issue: Consolidated Edison of New York sells $1 billion of debentures in two tranches
By Cristal Cody
Tupelo, Miss., May 7 – Consolidated Edison Co. of New York, Inc. priced a $1 billion two-tranche offering of debentures (A2/A-/A-) on Monday, according to FWP filings with the Securities and Exchange Commission.
The company sold $300 million of 3.8% 10-year bonds at 99.983 to yield 3.802%, or a spread of 85 basis points over Treasuries.
In the second tranche, Consolidated Edison priced $700 million of 4.5% 40-year debentures at 99.539 to yield 4.525%. The bonds priced with a Treasuries plus 140 bps spread.
Barclays, BofA Merrill Lynch, Wells Fargo Securities LLC, BNY Mellon Capital Markets LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments Inc. were the bookrunners.
Proceeds will be used for general corporate purposes, including repayment of short-term debt.
The electric utility is a subsidiary of New York City-based Consolidated Edison, Inc.
| Issuer: | Consolidated Edison Co. of New York, Inc.
|
| Amount: | $1 billion
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| Description: | Series 2018A and 2018B debentures
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| Bookrunners: | Barclays, BofA Merrill Lynch, Wells Fargo Securities LLC, BNY Mellon Capital Markets LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments Inc.
|
| Co-managers: | PNC Capital Markets LLC, Loop Capital Markets LLC and Samuel A. Ramirez | & Co., Inc.
|
| Trade date: | May 7
|
| Settlement date: | May 10
|
| Ratings: | Moody’s: A2
|
| S&P: A-
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| Fitch: A-
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| Distribution: | SEC registered
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|
|
| Ten-year notes
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| Amount: | $300 million
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| Description: | Series 2018A debentures
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| Maturity: | May 15, 2028
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| Coupon: | 3.80%
|
| Price: | 99.983
|
| Yield: | 3.802%
|
| Spread: | Treasuries plus 85 bps
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| Call features: | Make-whole call at Treasuries plus 15 bps before Feb. 15, 2028; thereafter at par
|
|
|
| Forty-year notes
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| Amount: | $700 million
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| Description: | Series 2018B debentures
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| Maturity: | May 15, 2058
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| Coupon: | 4.50%
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| Price: | 99.539
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| Yield: | 4.525%
|
| Spread: | Treasuries plus 140 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before Nov. 15, 2057; thereafter at par
|
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