By Lisa Kerner
Charlotte, N.C., June 5 - Vectren Corp. subsidiary Vectren Utility Holdings, Inc. placed $125 million of senior notes with various institutional investors through a private placement on Wednesday under a Dec. 20, 2012 note purchase agreement, according to an 8-K filing with the Securities and Exchange Commission.
The notes were issued in two tranches:
• $45 million of 3.20% series A notes due 2028; and
• $80 million of 4.25% series B notes due 2043.
Proceeds will be used to repay short-term borrowings used to refinance about $122 million principal amount of Vectren's 6.25% senior notes due 2039, which were called at par and were retired on or about April 1, and for general corporate purposes.
The notes have a make-whole call at Treasuries plus 50 basis points and are unconditionally guaranteed by Vectren subsidiaries Indiana Gas Co., Inc., Southern Indiana Gas and Electric Co. and Vectren Energy Delivery of Ohio, Inc.
Vectren is an Evansville, Ind.-based energy holding company.
| Issuer: | Vectren Utility Holdings, Inc.
|
| Issue: | Senior notes
|
| Amount: | $125 million
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Pricing date: | Dec. 20
|
| Settlement date: | June 5
|
| Distribution: | Private placement
|
|
|
| Series A notes
|
| Amount: | $45 million
|
| Maturity: | June 5, 2028
|
| Coupon: | 3.20%
|
|
|
| Series B notes
|
| Amount: | $80 million
|
| Maturity: | June 5, 2043
|
| Coupon: | 4.25%
|
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