Published on 11/15/2021 in the Prospect News Investment Grade Daily.
New Issue: Virginia Electric and Power sells $1 billion of notes due 2031, 2051
By Wendy Van Sickle
Columbus, Ohio, Nov. 15 – Virginia Electric and Power Co. priced $1 billion of senior notes (A2/BBB+/A) in two tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $500 million of 2.3% 10-year series A notes at 99.779 to yield 2.325%, or 70 basis points over Treasuries.
Virginia Electric priced $500 million of 2.95% 30-year series B notes at 99.783 to yield 2.961%. The bonds priced with a spread of 95 bps over Treasuries.
BMO Capital Markets Corp., BofA Securities, Inc., Mizuho Securities USA LLC, PNC Capital Markets LLC, Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc. were the bookrunners.
Proceeds will be used for general corporate purposes and to repay short-term debt.
The electric utility is based in Richmond, Va.
| Issuer: | Virginia Electric and Power Co.
|
| Amount: | $1 billion
|
| Description: | Senior notes
|
| Bookrunners: | BMO Capital Markets Corp., BofA Securities, Inc., Mizuho Securities USA LLC, PNC Capital Markets LLC, Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc.
|
| Co-managers: | Bancroft Capital LLC and R. Seelaus & Co., LLC
|
| Trade date: | Nov. 15
|
| Settlement date: | Nov. 22
|
| Ratings: | Moody’s: A2
|
| S&P: BBB+
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 15, 2031
|
| Coupon: | 2.3%
|
| Price: | 99.779
|
| Yield: | 2.325%
|
| Spread: | Treasuries plus 70 bps
|
| Call feature: | Make-whole call before Aug. 15, 2031 at Treasuries plus 15 bps; par call thereafter
|
| Cusip: | 927804GE8
|
|
|
| 30-year notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 15, 2051
|
| Coupon: | 2.95%
|
| Price: | 99.783
|
| Yield: | 2.961%
|
| Spread: | Treasuries plus 95 bps
|
| Call feature: | Make-whole call before May 15, 2051 at Treasuries plus 15 bps; par call thereafter
|
| Cusip: | 927804GF5
|
|
|
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