NV Energy subsidiary sets reference yield in offer for 6.75% notes

By Angela McDaniels

Tacoma, Wash., Dec. 17 - NV Energy, Inc. subsidiary Sierra Pacific Power Co. said the final reference yield in the tender offer for its $325 million of 6.75% general and refunding mortgage notes, series P, due 2037 is 4.438%.

The reference yield will be used to determine the price paid for the notes in the tender offer, according to a company news release.

The company is offering to purchase up to $75 million principal amount of the notes in a modified Dutch auction.

The yield to maturity is the sum of the yield to maturity of the 4.375% U.S. Treasury note due Nov. 15, 2039 plus a spread of 155 to 180 basis points minus accrued interest to the purchase date.

The total amount includes $40 for each $1,000 principal amount of notes tendered by 5 p.m. ET on Dec. 7, the early tender date.

Under the modified Dutch auction, Sierra Pacific will accept notes in the order of highest to lowest spreads and will select the single highest spread that will allow it to purchase notes up to the offer cap.

The tender offer began Nov. 23 and will end at midnight ET on Dec. 21.

Sierra Pacific plans to fund the tender offer with cash on hand and with funds borrowed under its revolving credit facility.

Goldman Sachs & Co. (800 828-3182 or collect 212 357-4692) is the dealer manager, and Global Bondholder Services Corp. (866 795-2200 or collect 212 430-3774) is the information agent.

NV Energy is a Las Vegas-based holding company. Its primary subsidiaries are utility companies Nevada Power Co. and Sierra Pacific Power, which both do business as NV Energy.

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