Published on 6/27/2023 in the Prospect News Investment Grade Daily.
New Issue: Arizona Public Service sells $500 million 5.55% notes due 2033 at 180 bps spread
By Wendy Van Sickle
Columbus, Ohio, June 27 – Arizona Public Service Co. sold $500 million of 5.55% notes due Aug. 1, 2033 at 99.855 (A3/BBB+/A-) to yield 5.568%, according to an FWP filing with the Securities and Exchange Commission.
The notes priced with a spread over Treasuries of 180 basis points.
J.P. Morgan Securities LLC, Truist Securities, Inc., RBC Capital Markets, LLC and U.S. Bancorp Investments, Inc. are the joint bookrunners.
The company will use proceeds to repay short-term debt consisting of commercial paper or to replenish cash incurred to fund capital expenditures and for general corporate purposes. As of June 26, the company had approximately $698 million of outstanding commercial paper borrowings at a weighted average annual interest rate of 5.26%.
Arizona Public Service is an electric utility wholly owned by Pinnacle West Capital Corp. The companies are based in Phoenix.
| Issuer: | Arizona Public Service Co.
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| Amount: | $500 million
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| Issue: | Notes
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| Maturity: | Aug. 1, 2033
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| Bookrunners: | J.P. Morgan Securities LLC, Truist Securities, Inc., RBC Capital Markets, LLC and U.S. Bancorp Investments, Inc.
|
| Co-managers: | BMO Capital Markets Corp., Cabrera Capital Markets, LLC and TD Securities (USA) LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | In-house
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| Counsel to underwriters: | Pillsbury Winthrop Shaw Pittman LLP
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| Coupon: | 5.55%
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| Price: | 99.855
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| Yield: | 5.568%
|
| Spread: | Treasuries plus 180 bps
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| Call features: | Make-whole call at Treasuries plus 30 bps until May 1, 2033; par thereafter
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| Trade date: | June 27
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| Settlement date: | June 30
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| Ratings: | Moody’s: A3
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| S&P: BBB+
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| Fitch: A-
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| Distribution: | SEC registered
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| Cusip: | 040555DG6
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