By Andrea Heisinger
New York, July 7 - Interstate Power & Light Co. priced an upsized $300 million 6.25% 30-year senior debentures Tuesday to yield Treasuries plus 195 basis points, according to an FWP filing with the Securities and Exchange Commission.
The size was originally $250 million, a market source said.
The notes (A3/BBB+/) priced at 99.368 to yield 6.297% with a make-whole call at Treasuries plus 30 bps.
Bookrunners were Banc of America Securities LLC and Wells Fargo Securities. Passive bookrunners were Mitsubishi UFJ Securities and RBS Securities Inc.
Co-managers were Commerzbank Corporate & Markets and Mizuho Securities USA Inc.
Proceeds will be used to repay short-term debt, to invest in short-term assets, to redeem $135 million in long-term debt and to fund capital expenditures.
The electric and natural gas provider is based in Cedar Rapids, Iowa.
| Issuer: | Interstate Power & Light Co.
|
| Issue: | Senior debentures
|
| Amount: | $300 million, increased from $250 million
|
| Maturity: | July 15, 2039
|
| Bookrunners: | Banc of America Securities LLC, Wells Fargo Securities (active), Mitsubishi UFJ Securities, RBS Securities Inc. (passive)
|
| Co-managers: | Commerzbank Corporate & Markets, Mizuho Securities USA Inc.
|
| Coupon: | 6.25%
|
| Price: | 99.368
|
| Yield: | 6.297%
|
| Spread: | Treasuries plus 195 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Trade date: | July 7
|
| Settlement date: | July 10
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB+
|
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