By Andrea Heisinger
New York, Jan. 3 - Virginia Electric Power Co. on Thursday priced $750 million of senior notes (A3/A-/A-) in two maturities, according to an FWP filing with the Securities and Exchange Commission.
The sale included $250 million of 1.2% five-year notes sold at 99.738 to yield 1.254% with a spread of Treasuries plus 45 basis points. This level was tighter than initial talk in the Treasuries plus 60 bps area.
A $500 million tranche of 4% 30-year bonds was priced at 99.6 to yield 4.023% with a spread of Treasuries plus 93 bps. The level was lower than initial guidance in the low 100 bps area.
The five-year notes have a make-whole call at Treasuries plus 10 bps until Dec. 15, 2017 with a par call after that date. The 30-year bonds have a make-whole call at Treasuries plus 15 bps until July 15, 2042, and a par call after.
The bookrunners were Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. and Scotia Capital (USA) Inc.
Proceeds are being used for general corporate purposes including repayment of short-term debt.
The public electric utility is based in Richmond, Va.
| Issuer: | Virginia Electric Power Co.
|
| Issue: | Senior notes
|
| Amount: | $750 million
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co., Scotia Capital (USA) Inc.
|
| Trade date: | Jan. 3
|
| Settlement date: | Jan. 8
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
| Fitch: A-
|
|
|
| Five-year notes
|
| Amount: | $250 million
|
| Maturity: | Jan. 15, 2018
|
| Coupon: | 1.2%
|
| Price: | 99.738
|
| Yield: | 1.254%
|
| Spread: | Treasuries plus 45 bps
|
| Call: | Make-whole at Treasuries plus 10 bps to Dec. 15, 2017, par call after
|
| Price talk: | 60 bps area (initial)
|
|
|
| Thirty-year notes
|
| Amount: | $500 million
|
| Maturity: | Jan. 15, 2043
|
| Coupon: | 4%
|
| Price: | 99.6
|
| Yield: | 4.023%
|
| Spread: | Treasuries plus 93 bps
|
| Call: | Make-whole at Treasuries plus 15 bps to July 15, 2042, par call after
|
| Price talk: | Low 100 bps area (initial)
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
