By Andrea Heisinger
New York, May 24 - Oklahoma Gas & Electric Co. sold $250 million of 5.25% 30-year senior bonds on Tuesday at a spread of Treasuries plus 105 basis points, a source close to the deal said.
They deal was sold at the tight end of guidance set in the 110 bps area, plus or minus 5 bps, the source said.
The bonds (A2/BBB+/A+) were priced at 99.389 to yield 5.291%. They have a make-whole call at 15 bps over Treasuries until Nov. 15, 2040, and are callable after that date at par.
J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the active bookrunners. BNY Mellon Capital Markets LLC was a passive bookrunner.
Joint lead managers were KeyBanc Capital Markets Inc. and Mitsubishi UFJ Securities International plc.
BOSC, Inc., UMB Financial Services, Inc. and U.S. Bancorp Investments Inc. were co-managers.
Proceeds will be added to the company's general funds and used to repay short-term debt, to fund an ongoing capital expenditure program or for working capital.
The electric utility is based in Oklahoma City.
| Issuer: | Oklahoma Gas & Electric Co.
|
| Issue: | Senior notes
|
| Amount: | $250 million
|
| Maturity: | May 15, 2041
|
| Bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC (active), BNY Mellon Capital Markets LLC (passive)
|
| Lead managers: | KeyBanc Capital Markets Inc., Mitsubishi UFJ Securities International plc
|
| Co-managers: | BOSC, Inc., UMB Financial Services, Inc., U.S. Bancorp Investments Inc.
|
| Coupon: | 5.25%
|
| Price: | 99.389
|
| Yield: | 5.291%
|
| Spread: | Treasuries plus 105 bps
|
| Call: | Make-whole at Treasuries plus 15 bps before Nov. 15, 2040, then at par
|
| Trade date: | May 24
|
| Settlement date: | May 27
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: BBB+
|
| Fitch: A+
|
| Price talk: | 110 bps area, plus or minus 5 bps
|
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