By Andrea Heisinger
New York, Sept. 28 - Pennsylvania Electric Co. priced $500 million of senior notes (Baa2/BBB/) in two tranches on Monday, according to an informed source and an FWP filing with the Securities and Exchange Commission.
A $250 million tranche of 5.2% notes due April 1, 2020 priced at 99.648 to yield 5.244%, or Treasuries plus 195 basis points. They have a make-whole call at Treasuries plus 25 bps.
The tranche priced in the middle of guidance of 187.5 bps to 200 bps, the source said. It was launched at 195 bps.
A $250 million tranche of 6.15% notes due Oct. 1, 2038 priced at 99.785 to yield 6.166%, or Treasuries plus 212.5 bps. The notes have a make-whole call of Treasuries plus 30 bps.
This tranche was sold at the wide end of guidance of 200 to 212.5 bps, the source said.
Bookrunners were Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and Wells Fargo Securities.
Senior co-managers were Mitsubishi UFJ Securities and Scotia Capital (USA) Inc. Co-managers were BNY Mellon Capital Markets LLC and Mizuho Securities USA Inc.
Proceeds will be used to repay short-term borrowings.
The electric subsidiary of FirstEnergy Corp. is based in Akron, Ohio.
| Issuer: | Pennsylvania Electric Co.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities Inc., Wells Fargo Securities
|
| Senior co-managers: | Mitsubishi UFJ Securities, Scotia Capital (USA) Inc.
|
| Co-managers: | BNY Mellon Capital Markets LLC, Mizuho Securities USA Inc.
|
| Trade date: | Sept. 28
|
| Settlement date: | Sept. 30
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
|
|
| Notes due 2020
|
| Amount: | $250 million
|
| Maturity: | April 1, 2020
|
| Coupon: | 5.2%
|
| Price: | 99.648
|
| Yield: | 5.244%
|
| Spread: | Treasuries plus 195 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 187.5 to 200 bps
|
|
|
| Notes due 2038
|
| Amount: | $250 million
|
| Maturity: | Oct. 1, 2038
|
| Coupon: | 6.15%
|
| Price: | 99.785
|
| Yield: | 6.166%
|
| Spread: | Treasuries plus 212.5 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 200 to 212.5 bps
|
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