By Cristal Cody
Tupelo, Miss., April 8 – Ipalco Enterprises Inc. priced $475 million of 4.25% 10-year senior secured notes (Baa3/BBB/BBB-) on Wednesday tighter than guidance at a spread of Treasuries plus 350 basis points, according to a market source.
The notes were initially talked to print in the Treasuries plus 400 bps area with guidance tightened to the 360 bps area, plus or minus 5 bps.
BofA Securities, Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC and U.S. Bancorp Investments, Inc. were the bookrunners of the Rule 144A and Regulation S transaction.
Proceeds will be used to repurchase or redeem the company’s $405 million of 3.45% senior secured notes due 2020, to repay in full $65 million of borrowings under its term loan and for general corporate purposes.
The issuer is the holding company of Indianapolis Power & Light Co., a regulated electric utility based in Indianapolis.
| Issuer: | Ipalco Enterprises Inc.
|
| Amount: | $475 million
|
| Description: | Senior secured notes
|
| Maturity: | May 1, 2030
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC and U.S. Bancorp Investments, Inc.
|
| Coupon: | 4.25%
|
| Spread: | Treasuries plus 350 bps
|
| Trade date: | April 8
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | Treasuries plus 360 bps area, plus or minus 5 bps; initial talk at Treasuries plus 400 bps area
|
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