Virginia Electric offers senior notes due 2032, add-on to 2051 notes; price talk emerges

By William Gullotti and Cristal Cody

Buffalo, N.Y., Jan. 5 – Virginia Electric & Power Co. is planning to price new series A senior notes due March 30, 2032 and an add-on to its series B senior notes due Nov. 15, 2051, according to a market source and additional details from a 424B5 filing with the Securities and Exchange Commission.

The series B notes are an add-on to the company’s $500 million 2.95% notes due Nov. 15, 2051 (Cusip: 927804GF5) that priced on Nov. 22.

The series B notes feature a make-whole call before May 15, 2051 and a par call thereafter.

Price talk for the add-on notes is in the Treasuries plus 125 basis points area, a market source told Prospect News.

The new 2032 notes are talked to yield in the Treasuries plus 95 bps area.

The series A notes will feature a call option as well.

Morgan Stanley & Co. LLC, PNC Capital Markets LLC, RBC Capital Markets LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC and Truist Securities Inc. are the joint bookrunning managers for the intended offering.

Co-managers are Academy Securities Inc., KeyBanc Capital Markets Inc., Loop Capital Markets LLC and Regions Securities LLC.

The company plans to use the proceeds for general corporate purposes, including the repayment of short-term debt. Short-term debt as of Dec. 29 included $786 million in outstanding commercial paper with a weighted average yield of 0.2533% and a weighted average days to maturity of approximately 16 days, the company said.

The electric utility is based in Richmond, Va.

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