By Aleesia Forni
Virginia Beach, Aug. 6 – Public Service Co. of New Mexico sold a $250 million offering of 3.85% senior notes (Baa2/BBB) due Aug. 1, 2025 at Treasuries plus 165 basis points, according to a market source and an FWP filed with the Securities and Exchange Commission.
Pricing was at 99.722 to yield 3.884%.
The notes sold at the tight end of the Treasuries plus 170 bps area guidance, tighter than talk set in the 187.5 bps area over Treasuries.
J.P. Morgan Securities LLC, MUFG, KeyBanc Capital Markets and RBC Capital Markets LLC are the bookrunners.
Proceeds will be used to repay a $175 million term loan with the Bank of Tokyo-Mitsubishi UFJ, Ltd., to repay outstanding borrowings under a $400 million revolving credit facility, to repay outstanding borrowings under a $50 million unsecured revolver, to repay outstanding borrowings under an intercompany loan agreement with parent company PNM Resources, Inc. and for other utility financing purposes.
Public Service Co. of New Mexico is an Albuquerque-based electric, water and gas utility services company.
| Issuer: | Public Service Co. of New Mexico
|
| Amount: | $250 million
|
| Description: | Senior notes
|
| Maturity: | Aug. 1, 2025
|
| Bookrunners: | J.P. Morgan Securities LLC, MUFG, KeyBanc Capital Markets, RBC Capital Markets LLC
|
| Co-managers: | Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc.
|
| Coupon: | 3.85%
|
| Price: | 99.722
|
| Yield: | 3.884%
|
| Spread: | Treasuries plus 165 bps
|
| Make-whole call: | Treasuries plus 25 bps prior to May 1, 2025, then callable at par
|
| Trade date: | Aug. 6
|
| Settlement date: | Aug. 11
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 170 bps area, tightened from Treasuries plus 187.5 bps area
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
