By Andrea Heisinger
New York, Aug. 6 - Public Service Co. of Colorado priced $600 million of first mortgage bonds (A3/A/A) in two tranches Wednesday, market sources said.
The $300 million of 5.8% 10-year bonds priced at 99.853 to yield 5.82%, equivalent to Treasuries plus 175 basis points.
The $300 million of 6.5% 30-year bonds priced at 99.598 to yield 6.531%, or Treasuries plus 185 bps.
Both tranches have make-whole redemption options of Treasuries plus 30 bps.
Bookrunners were Goldman Sachs & Co. and Lehman Brothers Inc.
Co-managers were BMO Capital Markets, Mitsubishi UFJ Securities and Scotia Capital.
Proceeds will be used for general corporate purposes and to fund payments of first mortgage bonds reaching maturity. The balance will be used to repay short-term debt and for general working capital.
The utility is based in Denver.
| Issuer: | Public Service Co. of Colorado
|
| Issue: | First mortgage bonds
|
| Total amount: | $600 million
|
| Bookrunners: | Goldman Sachs & Co., Lehman Brothers Inc.
|
| Co-managers: | BMO Capital Markets, Mitsubishi UFJ Securities, Scotia Capital
|
| Trade date: | Aug. 6
|
| Settlement date: | Aug. 13
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A
|
| Fitch: A
|
|
|
| 10-year notes
|
| Amount: | $300 million
|
| Maturity: | Aug. 1, 2018
|
| Coupon: | 5.8%
|
| Price: | 99.853
|
| Yield: | 5.82%
|
| Spread: | Treasuries plus 175 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
|
|
| 30-year notes
|
| Amount: | $300 million
|
| Maturity: | Aug. 1, 2038
|
| Coupon: | 6.5%
|
| Price: | 99.598
|
| Yield: | 6.531%
|
| Spread: | Treasuries plus 185 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
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