Chicago, March 8 – Avista Corp. sold $400 million of 4% first mortgage bonds with a 30-year tenor (A3/A-) on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The bonds priced at 99.964 to yield 4.002%, or 175 basis points over the benchmark Treasury.
There is an optional redemption with a Treasuries plus 30 bps make-whole premium until Oct. 1, 2051. After that date, the notes will be callable at par.
Joint bookrunners are listed as BofA Securities, Inc., MUFG, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC.
Proceeds will be used to pay off the $250 million of first mortgage bonds which mature April 1, 2022, to repay borrowings under the company’s $400 million credit facility and to fund construction, facility improvements and maintenance programs and other general corporate purposes.
Avista is a Spokane, Wash.-based electric and natural gas utility.
Issuer: | Avista Corp.
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Amount: | $400 million
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Issue: | First mortgage bonds
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Maturity: | April 1, 2052
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Bookrunners: | BofA Securities, Inc., MUFG, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
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Co-managers: | C.L. King & Associates, Inc., J.P. Morgan Securities LLC and KeyBanc Capital Markets Inc.
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Counsel to issuer: | In-house and Pillsbury Winthrop Shaw Pittman LLP
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Coupon: | 4%
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Price: | 99.964
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Yield: | 4.002%
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Spread: | Treasuries plus 175 bps
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Call features: | Make-whole call at Treasuries plus 30 bps until Oct. 1, 2051; thereafter at par
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Trade date: | March 8
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Settlement date: | March 17
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Ratings: | Moody’s: A3
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| S&P: A-
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Distribution: | SEC registered
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Cusip: | 05379BAR8
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