By Lisa Kerner
Charlotte, N.C., Dec. 4 - Avista Corp. issued $80 million of 4.23% first mortgage bonds due 2047 with some institutional investors under a June 27 bond purchase agreement, according to an 8-K filing with the Securities and Exchange Commission.
Proceeds will be used to repay a portion of the borrowings outstanding under the company's $400 million committed line of credit and for general corporate purposes.
As previously reported, in connection with the pricing of the bonds Avista cash settled interest rate swap contracts and paid a total of $18.5 million, which will be amortized as a component of interest expense over the life of the debt. The effective rate on the bonds is 5.8% as a result.
The bonds have not been, and will not be, registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Avista is a Spokane, Wash.-based energy company.
| Issuer: | Avista Corp.
|
| Issue: | First mortgage bonds
|
| Amount: | $80 million
|
| Maturity: | Nov. 29, 2047
|
| Coupon: | 4.23%
|
| Call: | Make-whole call at Treasuries plus 50 bps
|
| Pricing date: | June 27
|
| Settlement: | Nov. 30
|
| Distribution: | Private placement
|
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