By Andrea Heisinger
New York, Sept. 4 - Oklahoma Gas & Electric Co. priced $250 million 6.35% 10-year senior notes Thursday to yield Treasuries plus 275 basis points, an informed source said.
The notes (A2/BBB+/) priced at 99.645 to yield 6.399%. They have a make-whole redemption option of Treasuries plus 45 bps.
The issue priced in line with talk that was in the 275 bps area, a source said.
Bookrunners were UBS Investment Bank and Wachovia Capital Markets.
Proceeds will be used to fund a portion of the acquisition of the Redbud power plant. Pending that use, the company will temporarily repay a portion of outstanding commercial paper borrowings and short-term borrowings from its parent company, OGE Energy Corp.
The subsidiary of gas pipeline company OGE is based in Oklahoma City.
| Issuer: | Oklahoma Gas & Electric Co.
|
| Issue: | Senior notes
|
| Amount: | $250 million
|
| Maturity: | Sept. 1, 2018
|
| Bookrunners: | UBS Investment Bank, Wachovia Capital Markets
|
| Coupon: | 6.35%
|
| Price: | 99.645
|
| Yield: | 6.399%
|
| Spread: | Treasuries plus 275 bps
|
| Call: | Make-whole at Treasuries plus 45 bps
|
| Trade date: | Sept. 4
|
| Settlement date: | Sept. 9
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: BBB+
|
| Price talk: | 275 bps area
|
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