By Andrea Heisinger
New York, March 7 - Progress Energy Carolinas, Inc., which does business as Carolina Power & Light Co., priced $500 million of 4.1% 30-year first mortgage bonds on Thursday to yield Treasuries plus 93 basis points, according to an FWP filing with the Securities and Exchange Commission.
A source said talk was in the 95 bps area.
The notes (A1/A/A+) were sold at 99.265 to yield 4.143%.
There is a make-whole call at Treasuries plus 15 bps until Sept. 15, 2042 and a par call afterward.
Bookrunners were Barclays, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC and RBS Securities Inc.
Proceeds will be used to repay intercompany short-term debt under a money pool borrowing arrangement with Duke Energy Corp. and for general corporate purposes.
Progress Energy Carolinas was last in the U.S. bond market with a $1 billion sale of mortgage bonds in two parts on May 15, 2012. That offering included a 4.1% 30-year bond sold at 120 bps over Treasuries.
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: | $500 million
|
| Bookrunners: | Barclays, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, RBS Securities Inc.
|
| Senior co-manager: | CICC US Securities, Inc.
|
| Co-managers: | KeyBanc Capital Markets Inc., PNC Capital Markets LLC, U.S. Bancorp Investments, Inc., Williams Capital Group LP
|
| Coupon: | 4.1%
|
| Price: | 99.265
|
| Yield: | 4.143%
|
| Spread: | Treasuries plus 93 bps
|
| Call: | Make-whole at Treasuries plus 15 bps to Sept. 15, 2042, par call after
|
| Trade date: | March 7
|
| Settlement date: | March 12
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A
|
| Fitch: A+
|
| Price talk: | 95 bps area
|
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