Southern Power, Virginia Electric, Consolidated Edison price bonds; Duke Energy eases

By Cristal Cody

Eureka Springs, Ark., Nov. 10 – Investment-grade bond issuance resumed post-election on Thursday with nearly $3 billion of bonds priced by energy companies.

Southern Power Co. sold $1.3 billion of senior notes in three tranches.

Virginia Electric and Power Co. priced a $900 million two-part offering of senior notes.

Consolidated Edison Co. of New York, Inc. came with $750 million of debentures in two tranches.

Also, JPMorgan Chase & Co. was expected to price an offering of subordinated notes, according to a market source.

The Markit CDX North American Investment Grade index eased about 1 basis point to close the day at a spread of 75 bps.

Duke Energy Corp.’s 2.65% senior notes due 2026 softened about 1 bp in secondary trading on Thursday after tightening 6 bps in the previous session.

Bank of America Corp.’s 3.248% senior notes due 2027 were quoted 10 bps tighter earlier in the day.

In its deal, Southern Power sold $1.3 billion of senior notes (Baa1/BBB+/BBB+) in three tranches on Thursday, according to FWP filings with the Securities and Exchange Commission.

Southern Power priced $600 million of 1.95% three-year notes at 99.975 to yield 1.958%, or 80 bps over Treasuries. In the five-year tranche, Southern Power sold $300 million 2.5% notes at 99.781 to yield 2.546%, or Treasuries plus 100 bps. The company placed $400 million of 4.95% 30-year notes at 98.562 to yield 5.043%, or 210 bps over Treasuries.

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