By Cristal Cody
Chicago, March 4 – Atlantic City Electric Co. priced $350 million of 2.3% 10-year first mortgage bonds (A2/A/A-) at 99.946 to yield 2.306% on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced with a spread of Treasuries plus 83 basis points based on the 1.125% Treasury notes due Feb. 15, 2031.
Initial price talk had the issue coming at the Treasuries plus 90 bps area.
The bonds feature a make-whole call at any time with a premium of Treasuries plus 15 bps and then a par call three months before maturity.
Mizuho Securities USA Inc., Scotia Capital (USA) Inc., CIBC World Markets Corp. and PNC Capital Markets LLC are the bookrunners.
Proceeds will be used to refinance at maturity $200 million of the company’s 4.35% first mortgage bonds due April 1, 2021 and short-term borrowings and for general corporate purposes.
The electric company is based in Newark, Del.
| Issuer: | Atlantic City Electric Co.
|
| Issue: | First mortgage bonds
|
| Amount: | $350 million
|
| Maturity: | March 15, 2031
|
| Bookrunners: | Mizuho Securities USA Inc., Scotia Capital (USA) Inc., CIBC World Markets Corp. and PNC Capital Markets LLC
|
| Co-managers: | KeyBanc Capital Markets Inc., Siebert Williams Shank & Co., LLC, Blaylock Van, LLC, Drexel Hamilton, LLC and Great Pacific Securities
|
| Coupon: | 2.3%
|
| Price: | 99.946
|
| Yield: | 2.306%
|
| Spread: | Treasuries plus 83 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps; par call starting Dec. 15, 2030
|
| Pricing date: | March 3
|
| Settlement date: | March 10
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A-
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 90 bps area
|
| Cusip: | 048303CJ8
|
|
|
© 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.
