Published on 1/22/2024 in the Prospect News Green Finance Daily and Prospect News Investment Grade Daily.
New Issue: MidAmerican Energy sells $600 million green bonds due 2055 at 98 bps over Treasuries
By Wendy Van Sickle
Columbus, Ohio, Jan. 22 – MidAmerican Energy Co. priced $600 million of 5.3% green first mortgage bonds due 2055 (Aa2/A) at 99.576 to yield 5.328%, or Treasuries plus 98 basis points, on Monday, according to an FWP filed with the Securities and Exchange Commission.
BMO Capital Markets Corp. MUFG Securities Americas Inc. RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., CIBC World Markets Corp., nabSecurities, LLC, TD Securities (USA) LLC and Truist Securities, Inc. were the bookrunners.
Proceeds will be used to refinance existing or new eligible green projects. The company’s green financing framework is focused on renewable energy, clean transportation, climate change adaptation and energy efficiency.
MidAmerican Energy is an electric and natural gas utility company based in Des Moines. The company is an indirect wholly owned subsidiary of Berkshire Hathaway Energy Co.
| Issuer: | MidAmerican Energy Co.
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| Amount: | $600 million
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| Issue: | Green first mortgage bonds
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| Maturity: | Feb. 1, 2055
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| Bookrunners: | BMO Capital Markets Corp. MUFG Securities Americas Inc. RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., CIBC World Markets Corp., nabSecurities, LLC, TD Securities (USA) LLC and Truist Securities, Inc.
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| Co-managers: | BNY Mellon Capital Markets, LLC, KeyBanc Capital Markets Inc., Loop Capital Markets LLC and U.S. Bancorp Investments Inc.
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| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Gibson, Dunn & Crutcher LLP and Jeffery B. Erb, Esq.
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| Counsel to underwriters: | Latham & Watkins LLP
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| Coupon: | 5.3%
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| Price: | 99.576
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| Yield: | 5.328%
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| Spread: | Treasuries plus 98 bps
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| Call: | Greater of a par call and a make-whole call at Treasuries plus 15 bps until Aug. 1, 2054, then a par call
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| Pricing date: | Jan. 22
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| Settlement date: | Jan. 24
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| Ratings: | Moody’s: Aa2
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| S&P: A
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| Distribution: | SEC registered
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| Cusip: | 595620AZ8
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