By Devika Patel
Knoxville, Tenn., Aug. 28 – Vectren Corp. subsidiary Vectren Utility Holdings, Inc. completed the first $100 million tranche of a $200 million private placement of guaranteed senior notes, according to an 8-K filing with the Securities and Exchange Commission. The deal priced on July 14.
Institutional investors bought $100 million of 3.26% series A notes due 2032 in the first tranche, which settled on Monday, and will buy $100 million of 3.93% series B notes due 2047 on Nov. 29.
Proceeds will be used for capital expenditures and general corporate purposes.
The notes have a make-whole call option at Treasuries plus 50 basis points. Beginning 90 days prior to maturity, the notes are callable at par without a make-whole payment.
The notes are guaranteed by subsidiaries Indiana Gas Co., Inc., Southern Indiana Gas and Electric Co. and Vectren Energy Delivery of Ohio, Inc.
Vectren is an Evansville, Ind.-based energy holding company.
| Issuer: | Vectren Utility Holdings, Inc.
|
| Guarantors: | Indiana Gas Co., Inc., Southern Indiana Gas and Electric Co. and Vectren Energy Delivery of Ohio, Inc.
|
| Issue: | Guaranteed senior notes
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| Amount: | $200 million
|
| Call option: | Make-whole call option at Treasuries plus 50 bps; beginning 90 days prior to maturity, callable at par without amake-whole payment
|
| Pricing date: | July 14
|
|
|
| Series A notes
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| Amount: | $100 million
|
| Maturity: | Aug. 28, 2032
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| Coupon: | 3.26%
|
| Settlement date: | Aug. 28
|
|
|
| Series B notes
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| Amount: | $100 million
|
| Maturity: | Nov. 29, 2047
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| Coupon: | 3.93%
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| Settlement date: | Nov. 29
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