New Issue: Puget Sound details $425 million 4.3% notes due 2045 sold at 130 bps over Treasuries

By Aleesia Forni

Virginia Beach, May 12 – Puget Sound Energy Inc. detailed its $425 million sale of 4.3% 30-year first mortgage bonds in an FWP filed with the Securities and Exchange Commission on Tuesday.

The issue (A2/A-/) sold at 99.55 to yield 4.327%, or Treasuries plus 130 basis points, on Monday.

Pricing was at the tight end of guidance.

Proceeds will be used to redeem the company’s $150 million 5.197% senior secured notes due Oct. 1, 2015, which have an interest rate of 5.197%, and $250 million 6.75% senior secured notes due Jan. 15, 2016.

Puget Sound Energy is a Bellevue, Wash.-based electric utility company.

Issuer:	Puget Sound Energy Inc.
Amount:	$425 million
Description:	First mortgage bonds
Maturity:	May 20, 2045
Bookrunners:	J.P. Morgan Securities LLC, MUFG, Scotia Capital (USA) Inc.
Senior co-managers:	SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc., CIBC
Co-managers:	TD Securities, RBC Capital Markets LLC
Coupon:	4.3%
Price:	99.55
Yield:	4.327%
Spread:	130 bps over Treasuries
Trade date:	May 11
Settlement date:	May 26
Ratings:	Moody’s: A2
	Standard & Poor’s: A-
Distribution:	SEC registered
Price guidance:	130 bps to 135 bps over Treasuries
Make-whole call:	20 bps prior to Nov. 20, 2044, then callable at par

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