New Issue: Virginia Electric prices $900 million of 2.45% notes due 2050 at 85 bps spread

By Cristal Cody

Tupelo, Miss., Dec. 1 – Virginia Electric and Power Co. sold $900 million of 2.45% 30-year senior notes (A2/BBB+/A) on Tuesday at 98.408 to yield 2.526%, or an 85 basis points over Treasuries spread, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes were talked to price in the Treasuries plus 110 bps area.

BofA Securities Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, MUFG and TD Securities (USA) LLC were the bookrunners.

Proceeds will be used for general corporate purposes and to repay short-term debt, which included $185 million in outstanding commercial paper as of Nov. 20.

The electric utility is based in Richmond, Va.

Issuer:	Virginia Electric and Power Co.
Amount:	$900 million
Description:	2020 series A senior notes
Maturity:	Dec. 15, 2050
Bookrunners:	BofA Securities Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, MUFG and TD Securities (USA) LLC
Co-managers:	Blaylock Van, LLC, Siebert Williams Shank & Co., LLC and WR Securities, LLC
Coupon:	2.45%
Price:	98.408
Yield:	2.526%
Spread:	Treasuries plus 85 bps
Call features:	Make-whole call at Treasuries plus 15 bps before June 15, 2050; thereafter at par
Trade date:	Dec. 1
Settlement date:	Dec. 15
Ratings:	Moody’s: A2
	S&P: BBB+
	Fitch: A
Distribution:	SEC registered
Price guidance:	Treasuries plus 110 bps area

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