By Cristal Cody
Chicago, June 21 – PPL Electric Utilities Corp. sold a $650 million offering of three-year floating-rate first mortgage bonds (A1/A) at par with a coupon based on SOFR plus 33 basis points, according to an FWP filing with the Securities and Exchange Commission.
Initial price talk had the notes expected with a coupon in the SOFR plus 55 bps area, a market source noted.
The rate resets quarterly.
The notes have one year of call protection. After June 24, 2022, they can be redeemed at par plus interest.
BofA Securities Inc., Citigroup Global Markets Inc., Mizuho Securities USA Inc. and PNC Capital Markets LLC are the bookrunners.
Proceeds will be used to repay the company’s $400 million 3% first mortgage bonds due 2021 and for general corporate purposes.
The electric company is based in Allentown, Pa.
| Issuer: | PPL Electric Utilities Corp.
|
| Issue: | Floating-rate first mortgage bonds
|
| Amount: | $650 million
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| Maturity: | June 24, 2024
|
| Bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc., Mizuho Securities USA Inc. and PNC Capital Markets LLC
|
| Co-managers: | Truist Securities, Inc., Scotia Capital (USA) Inc., Santander Investment Securities Inc. and TD Securities (USA) LLC
|
| Coupon: | SOFR plus 33 bps
|
| Price: | Par
|
| Yield: | SOFR plus 33 bps
|
| Call features: | After June 24, 2022 at par
|
| Trade date: | June 21
|
| Settlement date: | June 24
|
| Ratings: | Moody’s: A1
|
| S&P: A
|
| Distribution: | SEC registered
|
| Price talk: | SOFR plus 55 bps area
|
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