By Andrea Heisinger
New York, Aug. 18 - PPL Electric Utilities Corp. priced $400 million of 3% 10-year first mortgage bonds on Thursday to yield Treasuries plus 100 basis points, an informed source said.
The notes (A3/A-/A-) were sold at 99.191 to yield 3.094%. They have a make-whole call at Treasuries plus 15 bps until June 15, 2021 and are callable at par after that date.
Bookrunners were Barclays Capital Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co., Inc.
Fifth Third Securities Inc., KeyBanc Capital Markets Inc., RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc. were the co-managers.
Proceeds will be used to repay short-term debt, including $150 million borrowed in a revolving credit agreement and a $100 million intercompany loan incurred to pay the redemption of $400 million of 7.125% senior secured bonds on July 26.
The utility is based in Allentown, Pa.
| Issuer: | PPL Electric Utilities Corp.
|
| Issue: | First mortgage bonds
|
| Amount: | $400 million
|
| Maturity: | Sept. 15, 2021
|
| Bookrunners: | Barclays Capital Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co., Inc.
|
| Co-managers: | Fifth Third Securities Inc., KeyBanc Capital Markets Inc., RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc.
|
| Coupon: | 3%
|
| Price: | 99.191
|
| Yield: | 3.094%
|
| Spread: | Treasuries plus 100 bps
|
| Call: | Make-whole at Treasuries plus 15 bps until June 15, 2021, after at par
|
| Trade date: | Aug. 18
|
| Settlement date: | Aug. 23
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
| Fitch: A-
|
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