By Andrea Heisinger
New York, March 28 - Potomac Electric Power Co. sold $200 million of 3.05% 10-year first mortgage bonds on Wednesday at a spread of Treasuries plus 90 basis points, a source close to the trade said.
The deal priced at the tight end of guidance in the 95 bps area, plus or minus 5 bps, the source said.
The notes (A3/A/A) were priced at 99.71 to yield 3.084%. There's a make-whole call at Treasuries plus 15 bps.
Bookrunners were KeyBanc Capital Markets Inc., RBS Securities Inc. and Wells Fargo Securities LLC.
Loop Capital Markets LLC was a co-manager.
Proceeds will be used to redeem $38.3 million of 5.375% pollution control revenue funding bonds, 1994 series. Any remainder will be used to repay commercial paper and for general corporate purposes.
The electric utility and subsidiary of Pepco Holdings, Inc. is based in Washington, D.C.
| Issuer: | Potomac Electric Power Co.
|
| Issue: | First mortgage bonds
|
| Amount: | $200 million
|
| Maturity: | April 1, 2022
|
| Bookrunners: | KeyBanc Capital Markets Inc., RBS Securities Inc., Wells Fargo Securities LLC
|
| Co-manager: | Loop Capital Markets LLC
|
| Coupon: | 3.05%
|
| Price: | 99.71
|
| Yield: | 3.084%
|
| Spread: | Treasuries plus 90 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Trade date: | March 28
|
| Settlement date: | April 4
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A
|
| Fitch: A
|
| Price talk: | 95 bps area, plus or minus 5 bps
|
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