By Andrea Heisinger
New York, Nov. 15 - Florida Power Corp., doing business as Progress Energy Florida, Inc., tapped the market for $650 million of first mortgage bonds (A2/A/A) in two maturities on Thursday, an informed source said.
The $250 million of 0.65% three-year notes sold at 99.911 to yield 0.68% with a spread of Treasuries plus 35 basis points. There is a make-whole call at Treasuries plus 5 bps.
A $400 million tranche of 3.85% 30-year bonds priced at 99.683 to yield 3.868% with a spread of Treasuries plus 115 bps. The bonds have a make-whole redemption at 20 bps over Treasuries until May 15, 2042, with a par call after that date.
Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and RBC Capital Markets LLC were the bookrunners.
Proceeds will be used to repay at maturity $425 million of 4.8% mortgage bonds due March 1, 2013, to repay intercompany short-term debt under a money-pool borrowing arrangement with Duke Energy Corp. and for general corporate purposes.
Progress Energy Florida last sold bonds in a $300 million sale of 10-year notes on Aug. 15, 2011.
The electric utility is based in St. Petersburg, Fla.
| Issuer: | Progress Energy Florida, Inc.
|
| Issue: | First mortgage bonds
|
| Amount: | $650 million
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC
|
| Co-managers: | BNY Mellon Capital Markets, LLC, Fifth Third Securities, Inc., PNC Capital Markets LLC, Santander Investment Securities Inc., SunTrust Robinson Humphrey, Inc.
|
| Trade date: | Nov. 15
|
| Settlement date: | Nov. 20
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
|
|
| Three-year notes
|
| Amount: | $250 million
|
| Maturity: | Nov. 15, 2015
|
| Coupon: | 0.65%
|
| Price: | 99.911
|
| Yield: | 0.68%
|
| Spread: | Treasuries plus 35 bps
|
| Call: | Make-whole at Treasuries plus 5 bps
|
|
|
| 30-year bonds
|
| Amount: | $400 million
|
| Maturity: | Nov. 15, 2042
|
| Coupon: | 3.85%
|
| Price: | 99.683
|
| Yield: | 3.868%
|
| Spread: | Treasuries plus 115 bps
|
| Call: | Make-whole at Treasuries plus 20 bps to May 15, 2042, par call after
|
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