By Andrea Heisinger
New York, Dec. 13 - PPL Energy Supply, LLC sold an upsized $500 million of 4.6% 10-year senior notes on Tuesday to yield Treasuries plus 262.5 basis points, an informed source said.
The deal size was increased from $350 million, the source said. The debt was priced at the low end of both whispered guidance in the mid-to-high 200 bps area and revised talk in the 262.5 bps to 275 bps range.
The notes (Baa2/BBB/BBB) were priced at 99.968 to yield 4.604%.
The notes have a make-whole call at Treasuries plus 40 bps until Sept. 15, 2021 and then can be redeemed at par.
Bookrunners were Deutsche Bank Securities Inc., RBS Securities Inc., Scotia Capital (USA) Inc. and Wells Fargo Securities LLC.
Co-managers were BNP Paribas Securities Corp., Mizuho Securities USA Inc., Credit Agricole Securities (USA) Inc. and PNC Capital Markets LLC.
Proceeds will be used to repay short-term debt incurred to repay $500 million of 6.4% notes due Nov. 1 and any remainder will go for general corporate purposes.
The utility is based in Allentown, Pa.
| Issuer: | PPL Energy Supply, LLC
|
| Issue: | Senior notes
|
| Amount: | $500 million, increased from $350 million
|
| Maturity: | Dec. 15, 2021
|
| Bookrunners: | Deutsche Bank Securities Inc., RBS Securities Inc., Scotia Capital (USA) Inc., Wells Fargo Securities LLC
|
| Co-managers: | BNP Paribas Securities Corp., Mizuho Securities USA Inc., Credit Agricole Securities (USA) Inc., PNC Capital Markets LLC
|
| Coupon: | 4.6%
|
| Price: | 99.968
|
| Yield: | 4.604%
|
| Spread: | Treasuries plus 262.5 bps
|
| Call: | Make-whole at Treasuries plus 40 bps until Sept. 15, 2021, after at par
|
| Trade date: | Dec. 13
|
| Settlement date: | Dec. 16
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
| Price talk: | Mid-to-high 200 bps (whispered), 262.5 bps to 275 bps (revised)
|
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