By Aleesia Forni
Virginia Beach, May 28 - ITC Holdings Corp. priced $400 million of 3.65% senior notes due 2024 on Wednesday with a spread of Treasuries plus 125 basis points, according to a market source and a FWP filed with the Securities and Exchange Commission.
The notes (Baa2/BBB+/) priced 20 bps tighter than initial guidance.
Pricing was at 99.666 to yield 3.69%.
Barclays, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC were the joint bookrunners.
Proceeds will be used to repay borrowings under the company's revolving credit agreement, with remaining proceeds being used for general corporate purposes.
ITC Holdings was last in the U.S. bond market with $550 million of senior notes priced in two tranches on June 26, 2013.
The trade included $250 million of 4.05% 10-year notes priced at Treasuries plus 155 basis points and $300 million of 5.3% 30-year bonds priced at 175 bps over Treasuries.
The power transmission company is based in Novi, Mich.
| Issuer: | ITC Holdings Corp.
|
| Amount: | $400 million
|
| Description: | Senior notes
|
| Maturity: | June 15, 2024
|
| Bookrunners: | Barclays, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., Wells Fargo Securities LLC
|
| Co-manager: | Comerica Securities, Inc.
|
| Coupon: | 3.65%
|
| Price: | 99.666
|
| Yield: | 3.69%
|
| Spread: | Treasuries plus 125 bps
|
| Trade date: | May 28
|
| Settlement date: | June 4
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB+
|
| Price talk: | Treasuries plus 130 bps area, tightened from Treasuries plus 145 bps area
|
| Make-whole call: | Treasuries plus 20 bps prior to March 15, 2024, then callable at par
|
| Distribution: | SEC-registered
|
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