By Andrea Heisinger
New York, May 15 - Progress Energy Carolinas, Inc., which does business as Carolina Power & Light Co., priced $1 billion of first mortgage bonds (Baa2/BBB/) in two parts on Tuesday, a source close to the deal said.
The $500 million of 2.8% 10-year notes priced at 99.775 to yield 2.826% with a spread of Treasuries plus 105 basis points. The notes were sold at the low end of talk in the 105 bps to 110 bps range.
There is a make-whole call at 20 bps over Treasuries until Feb. 15, 2022 and a par call after that date.
A second part was $500 million of 4.1% 30-year bonds sold at 99.504 to yield 4.129% with a spread of 120 bps over Treasuries. The bonds were priced at the tight end of guidance between 120 bps and 125 bps over Treasuries.
The bonds are callable at 20 bps over Treasuries until Nov. 15, 2041 and have a par call after that date.
Goldman Sachs & Co., Mitsubishi UFJ Securities (USA) Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the bookrunners.
Co-managers were BNY Mellon Capital Markets LLC, SunTrust Robinson Humphrey Inc., RBC Capital Markets LLC, U.S. Bancorp Investments Inc., Baird and KeyBanc Capital Markets Inc.
Proceeds will be used to retire at maturity $500 million of 6.5% notes due July 15, 2012 and to repay a portion of short-term debt.
The electric utility is based in Raleigh, N.C.
| Issuer: | Progress Energy Carolinas, Inc., d/b/a Carolina Power & Light Co.
|
| Issue: | First mortgage bonds
|
| Amount: | $1 billion
|
| Bookrunners: | Goldman Sachs & Co., Mitsubishi UFJ Securities (USA) Inc., Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Co-managers: | BNY Mellon Capital Markets LLC, SunTrust Robinson Humphrey Inc., RBC Capital Markets LLC, U.S. Bancorp Investments Inc., Baird, KeyBanc Capital Markets Inc.
|
| Trade date: | May 15
|
| Settlement date: | May 18
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
|
|
| 10-year bonds
|
| Amount: | $500 million
|
| Maturity: | May 15, 2022
|
| Coupon: | 2.8%
|
| Price: | 99.775
|
| Yield: | 2.826%
|
| Spread: | Treasuries plus 105 bps
|
| Call: | Make-whole at Treasuries plus 20 bps until Feb. 15, 2022, par call after
|
| Price talk: | 105 bps to 110 bps
|
|
|
| 30-year bonds
|
| Amount: | $500 million
|
| Maturity: | May 15, 2042
|
| Coupon: | 4.1%
|
| Price: | 99.504
|
| Yield: | 4.129%
|
| Spread: | Treasuries plus 120 bps
|
| Call: | Make-whole at Treasuries plus 20 bps until Nov. 15, 2041, par call after
|
| Price talk: | 120 bps to 125 bps
|
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