By Aleesia Forni
Virginia Beach, March 11 - Potomac Electric Power Co. (Pepco) priced $400 million of 3.6% 10-year first mortgage bonds with a spread of Treasuries plus 85 basis points, according to a market source and an FWP filed with the Securities and Exchange Commission.
The notes (A2/A/A-) priced at 99.867 to yield 3.616%.
Pricing was at the tight end of talk.
J.P. Morgan Securities LLC, RBS Securities Inc., Wells Fargo Securities LLC, Citigroup Global Markets Inc. and Goldman Sachs & Co. were the joint bookrunners.
Proceeds will be used to repay the company's $175 million of 4.65% notes due April 15, 2014, and remaining proceeds will be used to repay its outstanding commercial paper and for general corporate purposes.
Potomac Electric, a utility based in Washington, D.C., was last in the U.S. bond market with a $150 million sale of 30-year first mortgage bonds on Nov. 15 that priced with a 4.95% coupon and a spread of 115 bps.
| Issuer: | Potomac Electric Power Co.
|
| Amount: | $400 million
|
| Description: | First mortgage bonds
|
| Maturity: | March 15, 2024
|
| Bookrunners: | J.P. Morgan Securities LLC, RBS Securities Inc., Wells Fargo Securities LLC, Citigroup Global Markets Inc., Goldman Sachs & Co.
|
| Co-managers: | Ramirez & Co. Inc., Mischler Finance Group Inc.
|
| Coupon: | 3.6%
|
| Price: | 99.867
|
| Yield: | 3.616%
|
| Spread: | Treasuries plus 85 bps
|
| Price talk: | Treasuries plus 85 bps to 90 bps
|
| Trade date: | March 11
|
| Settlement date: | March 18
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A-
|
| Distribution: | SEC registered
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
