By Paul A. Harris
St. Louis, Jan. 7 - Indianapolis Power & Light Co. priced a split-rated $100 million issue of 30-year first mortgage bonds Tuesday at 99.977 with a 6.6% coupon to yield 6.602%, a syndicate source said.
The notes (Baa2/BB+/BBB), which mature Jan. 1, 2034, priced to yield 150 basis points over Treasuries, at the tight end of talk of 150 to 155 basis points.
Lehman Brothers ran the books on the Rule 144A (for the life of the bond) issue, which priced off of the investment-grade desk. ABN Amro, NatCity Investments, Huntington Investments and U.S. Bancorp Piper Jaffray were co-managers.
Proceeds will be used to retire $80 million of 6.05% first mortgage bonds due February 2004 and to finance a portion of the company's 2003-2006 construction program.
Indianapolis Power & Light is the primary subsidiary of Ipalco Enterprises Inc., an Indianapolis-based holding company that was acquired by The AES Corp.
| Issuer: | Indianapolis Power & Light Co.
|
| Amount: | $100 million
|
| Maturity: | Jan. 1, 2034
|
| Security description: | First mortgage bonds
|
| Bookrunner: | Lehman Brothers
|
| Co-managers: | ABN Amro, NatCity Investments, Huntington Investments, U.S. Bancorp Piper Jaffray
|
| Coupon: | 6.6%
|
| Price: | 99.977
|
| Yield: | 6.602%
|
| Spread: | 150 basis points
|
| Call protection: | Non-callable
|
| Trade date: | Jan. 6
|
| Settlement date: | Jan. 13
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BB+
|
| Fitch: BBB
|
| Price talk: | 150-155 basis points
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
