By Aleesia Forni
Virginia Beach, May 27 – Xcel Energy Inc. sold a $500 million issue of senior notes (A3/BBB+/BBB+) on Wednesday in two tranches, according to an informed source and a FWP filing with the Securities and Exchange Commission.
The sale included $250 million of 1.2% notes due June 1, 2017 at 99.929 to yield 1.236%, or Treasuries plus 58 basis points.
The notes sold at the tight end of guidance.
A $250 million tranche of 3.3% notes due June 1, 2025 priced at 99.587 to yield 3.349%, or Treasuries plus 120 bps.
Pricing was at the tight end of price guidance.
Barclays, BofA Merrill Lynch and J.P. Morgan Securities LLC are the bookrunners.
Proceeds will be used to repay short-term debt and for other general corporate purposes.
The public utility holding company is based in Minneapolis.
| Issuer: | Xcel Energy Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Bookrunners: | Barclays, BofA Merrill Lynch, J.P. Morgan Securities LLC
|
| Co-manager: | CIBC World Markets Corp.
|
| Trade date: | May 27
|
| Settlement date: | June 1
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC-registered
|
|
|
| Two-year notes
|
| Amount: | $250 million
|
| Maturity: | June 1, 2017
|
| Coupon: | 1.2%
|
| Price: | 99.929
|
| Yield: | 1.236%
|
| Spread: | Treasuries plus 58 bps
|
| Price guidance: | Treasuries plus 60 bps area
|
| Make-whole call: | Treasuries plus 10 bps
|
|
|
| Five-year notes
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| Amount: | $250 million
|
| Maturity: | June 1, 2025
|
| Coupon: | 3.3%
|
| Price: | 99.587
|
| Yield: | 3.349%
|
| Spread: | Treasuries plus 120 bps
|
| Price guidance: | Treasuries plus 125 bps area
|
| Make-whole call: | Treasuries plus 20 bps prior to Dec. 1, 2024, then callable at par
|
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