By Paul A. Harris
Portland, Ore., May 10 - Ipalco Enterprises, Inc. priced a $400 million issue of 5% seven-year senior secured notes (Ba1/BB+/BBB-) at a 245 basis points spread to Treasuries on Tuesday, according to a market source.
The notes priced at 99.927 to yield 5.013%.
The spread came at the tight end of the Treasuries plus 250 bps price talk.
Bank of America Merrill Lynch, J.P. Morgan Securities LLC, RBS Securities Inc. and Mitsubishi UFJ Securities (USA), Inc. were the underwriters for the quick-to-market deal, which was transacted on the investment-grade desk.
The Indianapolis-based regulated electric utility plans to use the proceeds to finance its repurchase of up to $375 million 8 5/8% senior secured notes due 2011.
| Issuer: | Ipalco Enterprises, Inc.
|
| Face amount: | $400 million
|
| Proceeds: | $399,708,000
|
| Maturity: | May 1, 2018
|
| Securities: | Senior secured notes
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, RBS Securities Inc., Mitsubishi UFJ Securities (USA), Inc.
|
| Coupon: | 5%
|
| Price: | 99.927
|
| Yield: | 5.013%
|
| Spread: | Treasuries plus 245 bps
|
| Trade date: | May 10
|
| Settlement date: | May 18
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB+
|
| Fitch: BBB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | Treasuries plus 250 bps
|
| Marketing: | Quick to market
|
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