By Marisa Wong
Los Angeles, May 10 – Public Service Co. of Colorado priced $700 million of first mortgage bonds (A1/A/A+) in two series, according to a 424B5 filed with the Securities and Exchange Commission.
The company priced $300 million of 4.1% series 38 bonds due 2032 at 99.372 to yield 4.177%, or a spread of 120 basis points over Treasuries.
The second tranche consists of $400 million of 4.5% series 39 bonds due 2052 priced at 98.909 to yield 4.567%, or a spread of 145 bps over Treasuries.
Both series feature a make-whole call and then a par call.
CIBC World Markets Corp., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, PNC Capital Markets LLC and Scotia Capital (USA) Inc. are the joint bookrunners.
Proceeds will be used to repay short-term borrowings, to help fund the repayment or redemption of outstanding long-term debt, including $300 million aggregate principal amount of the company’s 2.25% first mortgage bonds, and for other general corporate purposes.
Public Service Co. of Colorado is an electric and natural gas company based in Denver and a subsidiary of Xcel Energy Inc.
| Issuer: | Public Service Co. of Colorado
|
| Amount: | $700 million
|
| Issue: | First mortgage bonds
|
| Bookrunners: | CIBC World Markets Corp., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, PNC Capital Markets LLC and Scotia Capital (USA) Inc.
|
| Co-managers: | Loop Capital Markets LLC and Penserra Securities LLC
|
| Trustee: | U.S. Bank Trust Co., NA
|
| Counsel to issuer: | Faegre Drinker Biddle & Reath LLP and Jones Day
|
| Counsel to underwriters: | Hunton Andrews Kurth LLP
|
| Pricing date: | May 10
|
| Settlement date: | May 17
|
| Expected ratings: | Moody’s: A1
|
| S&P: A
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| Series 38 bonds
|
| Amount: | $300 million
|
| Maturity: | June 1, 2032
|
| Coupon: | 4.1%
|
| Price: | 99.372
|
| Yield: | 4.177%
|
| Spread: | Treasuries plus 120 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps prior to Dec. 1, 2031; par call after that
|
| Cusip: | 744448CW9
|
|
|
| Series 39 bonds
|
| Amount: | $400 million
|
| Maturity: | June 1, 2052
|
| Coupon: | 4.5%
|
| Price: | 98.909
|
| Yield: | 4.567%
|
| Spread: | Treasuries plus 145 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps prior to Dec. 1, 2051; par call after that
|
| Cusip: | 744448CX7
|
|
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