By Andrea Heisinger
New York, Sept. 4 - Public Service Co. of Colorado priced $800 million of first mortgage bonds (A2/A/A) on Tuesday in two maturities, a market source said.
The $300 million of 2.25% 10-year bonds, series 23, were sold at 99.902 to yield 2.261% with a spread of 68 basis points over Treasuries. The tranche was sold at the low end of talk in the 70 bps area.
There is a make-whole call at Treasuries plus 10 bps until March 15, 2022 and a par call after that date.
A $500 million tranche of 3.6% 30-year bonds, series 24, priced at 99.654 to yield 3.619% with a spread of 95 bps over Treasuries. The bonds were also sold at the tight end of guidance in the 100 bps area.
The paper has a make-whole call at 15 bps over Treasuries until March 15, 2042 and a par call after that date.
Active bookrunners were Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and RBS Securities Inc. Passive bookrunneres were BNP Paribas Securities Corp. and U.S. Bancorp Investments Inc.
Proceeds will be added to the company's general funds and applied to repayment or redemption of outstanding long-term debt, including maturities of $600 million in 7.875% first mortgage bonds due on Oct. 1. Any remainder will be used for general corporate purposes.
The public electric and natural gas utility is based in Denver.
| Issuer: | Public Service Co. of Colorado
|
| Issue: | First mortgage bonds
|
| Amount: | $800 million
|
| Bookrunners: | Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., RBS Securities Inc. (active), BNP Paribas Securities Corp., U.S. Bancorp Investments Inc. (passive)
|
| Co-managers: | Mizuho Securities USA Inc., Scotia Capital (USA) Inc.
|
| Trade date: | Sept. 4
|
| Settlement date: | Sept. 11
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
|
|
| 10-year notes
|
| Amount: | $300 million
|
| Maturity: | Sept. 15, 2022
|
| Coupon: | 2.25%
|
| Price: | 99.902
|
| Yield: | 2.261%
|
| Spread: | Treasuries plus 68 bps
|
| Call: | Make-whole at Treasuries plus 10 bps until March 15, 2022, par call after
|
| Price talk: | 70 bps area
|
|
|
| 30-year bonds
|
| Amount: | $500 million
|
| Maturity: | Sept. 15, 2042
|
| Coupon: | 3.6%
|
| Price: | 99.654
|
| Yield: | 3.619%
|
| Spread: | Treasuries plus 95 bps
|
| Call: | Make-whole at Treasuries plus 15 bps until March 15, 2042
|
| Price talk: | 100 bps area
|
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