By Kenneth Lim
Boston, April 7 - Vectren Corp. subsidiary Vectren Utility Holdings, Inc. placed $100 million of 6.28% senior guaranteed notes due April 7, 2020, according to a filing with the Securities and Exchange Commission.
The notes are guaranteed by Indiana Gas Co., Inc., Southern Indiana Gas and Electric Co. and Vectren Energy Delivery of Ohio, Inc.
The notes may be called at any time subject to a make-whole call at 50 basis points over Treasuries.
Metropolitan Life Insurance Co. was the investor.
Proceeds will be used to reduce Vectren Utility's outstanding short-term debt and for other corporate purposes.
Vectren Corp. is an Evansville, Ind.-based energy holding company. The placement was the second in as many months by Vectren Corp. The company's subsidiary Vectren Capital on March 11 also placed $150 million of senior notes with institutional investors.
"We are pleased to have been able to execute this 11-year long-term debt issue to support our utility operations at an attractive interest rate during a period of sustained volatility in the financial markets," Vectren Corp. executive vice president and chief financial officer Jerome A. Benkert Jr. said in a statement.
"This transaction, coupled with the successful issuance of $150 million of privately placed long-term debt by Vectren Capital Corp. on March 11 to support nonutility operations, significantly improves Vectren's available liquidity and reduces reliance on its short-term credit facilities."
| Issuer: | Vectren Utility Holdings, Inc.
|
| Guarantors: | Indiana Gas Co., Inc., Southern Indiana Gas and Electric Co. and Vectren Energy Delivery of Ohio, Inc.
|
| Issue: | Senior guaranteed notes
|
| Amount: | $100 million
|
| Maturity: | April 7, 2020
|
| Coupon: | 6.28%
|
| Call: | Make-whole call at Treasuries plus 50 bps
|
| Investor: | Metropolitan Life Insurance Co.
|
| Settlement date: | April 7
|
| Distribution: | Private placement
|
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