By Sheri Kasprzak
New York, Aug. 21 - The PPL Electric Utilities Corp. priced $250 million of 2.5% 10-year first mortgage bonds, according to a term sheet.
The bonds (A3/A-/A-), which mature Sept. 1, 2022, were priced at 99.665 to yield 2.538%, or a spread of 70 basis points over Treasuries.
The bonds have a make-whole call at Treasuries plus 10 bps before June 1, 2022 and are callable at par from that date onwards.
The joint bookrunners were Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Scotia Capital (USA) Inc.
The co-managers were CIBC World Markets Corp., Credit Agricole Securities (USA) Inc., Lloyds Securities Inc. and Williams Capital Group LP.
Proceeds will be used to repay short-term debt that was incurred to fund the company's redemption of its 6.25% preference stock in June 2012 and for other general corporate purposes.
| Issuer: | PPL Electric Utilities Corp.
|
| Issue: | First mortgage bonds
|
| Amount: | $250 million
|
| Maturity: | Sept. 1, 2022
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Scotia Capital (USA) Inc.
|
| Co-managers: | CIBC World Markets Corp., Credit Agricole Securities (USA) Inc., Lloyds Securities Inc., Williams Capital Group LP
|
| Coupon: | 2.5%
|
| Price: | 99.665
|
| Yield: | 2.538%
|
| Call: | Make-whole call at Treasuries plus 10 bps until June 1, 2022, then callable at par
|
| Distribution: | Off shelf
|
| Trade date: | Aug. 21
|
| Settlement date: | Aug. 24
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
| Fitch: A-
|
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