Puget Sound Energy gets $193.45 million early tenders for 6.974% notes

By Tali Rackner

Minneapolis, March 19 – Puget Sound Energy, Inc. received tenders for $193,447,000 of 6.974% series A enhanced junior subordinated notes due June 1, 2067 as of 5 p.m. ET on March 16, the early tender time of its previously announced cash tender offer, according to an announcement.

All of the early tendered notes were accepted for purchase and will be settled on March 20.

The company also said it obtained the requisite number of consents to amend the notes to eliminate the restrictions that state that the company may only repurchase, redeem or repay the notes before June 1, 2047 if a specified portion of the funds used in the transaction are obtained by the issuer through the sale of common stock or other equity or equity-like securities.

The total purchase price will be $1,005 per $1,000 principal amount of notes tendered, which includes an early tender payment of $30 per $1,000 principal amount.

Holders also will receive accrued interest up to but excluding the settlement date.

The tender offer for the remaining amount of the $250 million notes expires at 5 p.m. ET on April 2, with final settlement slated for April 3.

Interest on the junior subordinated notes is a floating rate of Libor plus 253 basis points, reset quarterly.

At the same time, Puget Sound obtained the required number of consents from holders of its 6.274% senior notes due March 15, 2037, or covered notes, to terminate the replacement capital covenant dated June 4, 2007.

The replacement capital covenant includes restrictions for repurchases, redemptions and repayments of the notes.

Holders of covered notes who validly consented before the consent expiration date will receive $10 in cash per $1,000 principal amount of notes consented.

For questions call Barclays at 800 438-3242 or 212 528-7581 or D.F. King & Co., Inc. at 877 732-3614 or the information agent at pse@dfking.com.

Puget Sound Energy is a Bellevue, Wash.-based electric utility company.

© 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.