By Cristal Cody
Tupelo, Miss., June 10 – Pinnacle West Capital Corp. priced $500 million of 1.3% five-year senior notes (A3/BBB+/A-) on Wednesday at 99.99 to yield 1.302%, or a spread of 95 basis points over Treasuries, according to a market source and an FWP filed with the Securities and Exchange Commission.
The notes were talked to price in the Treasuries plus 115 bps area.
J.P. Morgan Securities LLC, PNC Capital Markets LLC, Wells Fargo Securities LLC, BNP Paribas Securities Corp. and MUFG were the bookrunners.
Proceeds will be used to repay all or a portion of the company’s $150 million term loan, to repay short-term debt and/or replenish cash used for capital expenditures, to redeem or otherwise pay at or prior to maturity all or a portion of the company’s $300 million of 2.25% senior notes due Nov. 30, 2020 and for general corporate purposes.
Pinnacle West is a Phoenix-based holding company that receives revenue from subsidiary electric utility Arizona Public Service Co.
| Issuer: | Pinnacle West Capital Corp.
|
| Amount: | $500 million
|
| Description: | Senior notes
|
| Maturity: | June 15, 2025
|
| Bookrunners: | J.P. Morgan Securities LLC, PNC Capital Markets LLC, Wells Fargo Securities LLC, BNP Paribas Securities Corp. and MUFG
|
| Co-managers: | Drexel Hamilton LLC and Penserra Securities LLC
|
| Coupon: | 1.3%
|
| Price: | 99.99
|
| Yield: | 1.302%
|
| Spread: | Treasuries plus 95 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps before May 15, 2025; thereafter at par
|
| Trade date: | June 10
|
| Settlement date: | June 17
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Fitch: A-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 115 bps area
|
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