By Andrea Heisinger
Omaha, March 11 - PPL Energy Supply, LLC priced an upsized $400 million 6.5% 10-year notes on Tuesday to yield Treasuries plus 295 basis points, an informed source said.
The issue was increased from $300 million.
The notes (Baa2/BBB/BBB+) priced at 99.661 to yield 6.544%. They have a make-whole redemption of Treasuries plus 50 bps.
The notes priced tighter than the talk, which was in the area of 300 bps more than Treasuries, a source said.
Bookrunners were Barclays Capital Inc., Goldman Sachs & Co. and RBS Greenwich Capital.
Co-managers were KeyBanc Capital Markets, Lehman Brothers Inc., Toussaint Capital Partners, LLC and the Williams Capital Group, LP.
Proceeds will be used for general corporate purposes, including capital expenditures relating to installation of pollution control equipment. Pending this, proceeds may be loaned to other subsidiaries of PPL Corp. for working capital or for short-term investments.
The utility is based in Allentown, Pa.
| Issuer: | PPL Energy Supply, LLC
|
| Issue: | Senior notes
|
| Amount: | $400 million, increased from $300 million
|
| Maturity: | May 1, 2018
|
| Bookrunners: | Barclays Capital Inc., Goldman Sachs & Co., RBS Greenwich Capital
|
| Co-managers: | KeyBanc Capital Markets, Lehman Brothers Inc., Toussaint Capital Partners, LLC and the Williams Capital Group, LP
|
| Coupon: | 6.5%
|
| Price: | 99.661
|
| Yield: | 6.544%
|
| Spread: | Treasuries plus 295 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Trade date: | March 11
|
| Settlement date: | March 14
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB+
|
| Price talk: | 300 bps area
|
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