By Andrea Heisinger
New York, April 13 - Portland General Electric Co. priced an upsized $300 million of 6.1% 10-year first mortgage bonds Monday to yield Treasuries plus 325 basis points, according to an FWP filing with the Securities and Exchange Commission.
The size was originally $250 million, a source said.
The bonds (Baa1/A/) priced at 99.926 to yield 6.11% with a make-whole call at Treasuries plus 50 bps.
The bonds came in well below price talk of 337.5 to 350 bps, a source close to the sale said. They were able to "lean on the price" because of the size they got done, he said.
Bookrunners were Deutsche Bank Securities Inc. and Wachovia Capital Markets LLC. Co-managers were Banc of America Securities LLC, BNY Capital Markets and U.S. Bancorp Investments.
Proceeds will be used for general corporate purposes, including funding capital expenditures and refinancing $142 million in pollution control bonds due 2033.
The electric utility is based in Portland, Ore.
| Issuer: | Portland General Electric Co.
|
| Issue: | First mortgage bonds
|
| Amount: | $300 million, upsized from $250 million
|
| Maturity: | April 15, 2019
|
| Bookrunners: | Deutsche Bank Securities Inc., Wachovia Capital Markets LLC
|
| Co-managers: | Banc of America Securities LLC, BNY Capital Markets, U.S. Bancorp Investments
|
| Coupon: | 6.1%
|
| Price: | 99.926
|
| Yield: | 6.11%
|
| Spread: | Treasuries plus 325 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Trade date: | April 13
|
| Settlement date: | April 16
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A
|
| Price talk: | 337.5 bps to 350 bps
|
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