By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Aug. 11 – Public Service Co. of Oklahoma priced $800 million of 10- and 30-year green senior notes in two equally sized tranches (expected: Baa1/A-/A-) on Wednesday, according to an FWP filing with the Securities and Exchange Commission and details from a source.
The utility sold $400 million of 2.2% 10-year notes at 99.67 to yield 2.237%, or Treasuries plus 90 basis points, compared to talk with a spread in the Treasuries plus 110 bps to 115 bps area.
A $400 million tranche of 3.15% 30-year notes priced at 99.576 to yield 3.172%, or a spread of Treasuries plus 115 bps versus spread talk in the Treasuries plus 135 bps area.
Credit Agricole CIB, SMBC Nikko Securities America Inc., KeyBanc Capital Markets Inc., PNC Capital Markets LLC and Wells Fargo Securities LLC are leading the sale.
Credit Agricole and SMBC Nikko are green structuring agents.
Bank of New York Mellon Trust Co., NA is the trustee.
The company used in-house counsel for its legal opinions. Hunton Andrews Kurth LLP is advising the underwriters.
Proceeds will be used to fund the company’s construction program or for other general corporate purposes relating to its utility business.
Public Service Co. of Oklahoma is an electric utility company based in Tulsa.
| Issuer: | Public Service Co. of Oklahoma
|
| Issue: | Green senior notes
|
| Amount: | $800 million
|
| Bookrunners: | Credit Agricole CIB, SMBC Nikko Securities America Inc., KeyBanc Capital Markets Inc., PNC Capital Markets LLC and Wells Fargo Securities LLC
|
| Co-managers: | BOK Financial Securities, Inc., Academy Securities and Cabrera Capital Markets LLC
|
| Green structuring agents: | Credit Agricole CIB and SMBC Nikko Securities America Inc.
|
| Pricing date: | Aug. 11
|
| Settlement date: | Aug. 13
|
| Ratings: | Moody’s: Baa1
|
| S&P: A-
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $400 million
|
| Maturity: | Aug. 15, 2031
|
| Coupon: | 2.2%
|
| Price: | 99.67
|
| Yield: | 2.237%
|
| Spread: | Treasuries plus 90 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until May 15, 2031, par call thereafter
|
| Talk: | Treasuries plus 110 bps to 115 bps area
|
| Cusip: | 744533BM1
|
|
|
| 30-year notes
|
| Amount: | $400 million
|
| Maturity: | Aug. 15, 2051
|
| Coupon: | 3.15%
|
| Price: | 99.576
|
| Yield: | 3.172%
|
| Spread: | Treasuries plus 115 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until Feb. 15, 2051, par call thereafter
|
| Talk: | Treasuries plus 135 bps area
|
| Cusip: | 744533BP4
|
|
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