By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., March 22 – Narragansett Electric Co., which does business as Rhode Island Energy, priced an upsized $500 million of 5.35% notes due 2034 (A3/A-) on Thursday at Treasuries plus 108 basis points, according to a market source.
Initial price talk on the Rule 144A and Regulation S notes was in the Treasuries plus 135 bps area.
The deal size was increased from $400 million. The final order book totaled $1.5 billion.
Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and RBC Capital Markets LLC were the bookrunners.
Proceeds are earmarked to repay short-term debt and for general corporate purposes.
Narragansett Electric, a subsidiary of National Grid USA Service Co., Inc., is an electric and gas company based in Providence, R.I.
| Issuer: | Narragansett Electric Co.
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| Amount: | $500 million
|
| Issue: | Notes
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| Maturity: | May 1, 2034
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| Bookrunners: | Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and RBC Capital Markets LLC
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| Coupon: | 5.35%
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| Spread: | Treasuries plus 108 bps
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| Pricing date: | March 21
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| Ratings: | Moody’s: A3
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| S&P: A-
|
| Distribution: | Rule 144A and Regulation S
|
| Price guidance: | Treasuries plus 135 bps area
|
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