By Kenneth Lim
Boston, March 4 - Vectren Capital Corp. priced an upsized $150 million of senior guaranteed notes in three tranches at the rich end of talk, according to market sources.
The company priced $30 million of five-year notes with a coupon of 6.37%, $60 million of seven-year notes with a coupon of 6.92% and $60 million of 10-year notes with a coupon of 7.3%. All were priced to yield 450 basis points over Treasuries.
Price talk was for a spread of 450 bps to 475 bps.
Banc of America Securities LLC was the placement agent, with Mizuho Securities USA Inc. and Union Bank of California as co-agents.
Vectren Capital is the funding arm for the unregulated businesses of Vectren Corp. The parent company is an Evansville, Ind.-based energy holding company.
| Issuer: | Vectren Capital Corp.
|
| Issue: | Senior guaranteed notes
|
| Total amount: | $150 million
|
| Placement agent: | Banc of America Securities LLC
|
| Co-agents: | Mizuho Securities USA Inc., Union Bank of California
|
| Price talk: | Treasuries plus 450 to 475 bps
|
|
|
| Tranche A
|
| Amount: | $30 million
|
| Maturity: | 2014
|
| Coupon: | 6.37%
|
| Spread: | Treasuries plus 450 bps
|
|
|
| Tranche B
|
| Amount: | $60 million
|
| Maturity: | 2016
|
| Coupon: | 6.92%
|
| Spread: | Treasuries plus 450 bps
|
|
|
| Tranche C
|
| Amount: | $60 million
|
| Maturity: | 2019
|
| Coupon: | 7.3%
|
| Spread: | Treasuries plus 450 bps
|
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