Published on 5/16/2022 in the Prospect News Investment Grade Daily.
New Issue: Virginia Electric and Power sells $1.2 billion of notes due 2027, 2052
By Wendy Van Sickle
Columbus, Ohio, May 16 – Virginia Electric and Power Co. priced $1.2 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 $600 million of 3.75% five-year series B notes at 99.688 to yield 3.82%, or 98 basis points over Treasuries.
Virginia Electric priced $600 million of 4.625% 30-year series C notes at 98.613 to yield 4.712%. The bonds priced with a spread of 160 bps over Treasuries.
Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, MUFG, U.S. Bancorp Investments, Inc., BMO Capital Markets Corp., Guggenheim Securities, LLC, J.P. Morgan Securities LLC and Mizuho Securities USA LLC 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: | $1.2 billion
|
| Issue: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, MUFG, U.S. Bancorp Investments, Inc., BMO Capital Markets Corp., Guggenheim Securities, LLC, J.P. Morgan Securities LLC and Mizuho Securities USA LLC
|
| Co-manager: | Samuel A. Ramirez & Co., Inc.
|
| Trustee: | U.S. Bank NA
|
| Counsel to issuer: | McGuireWoods LLP
|
| Counsel to underwriters: | Troutman Pepper Hamilton Sanders LLP
|
| Trade date: | May 16
|
| Settlement date: | May 31
|
| Ratings: | Moody’s: A2
|
| S&P: BBB+
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $600 million
|
| Maturity: | May 15, 2027
|
| Coupon: | 3.75%
|
| Price: | 99.688
|
| Yield: | 3.82%
|
| Spread: | Treasuries plus 98 bps
|
| Call feature: | Make-whole call before April 15, 2027 at Treasuries plus 15 bps; par call thereafter
|
| Cusip: | 927804GH1
|
|
|
| 30-year notes
|
| Amount: | $600 million
|
| Maturity: | May 15, 2052
|
| Coupon: | 4.625%
|
| Price: | 98.613
|
| Yield: | 4.712%
|
| Spread: | Treasuries plus 160 bps
|
| Call feature: | Make-whole call before Nov. 15, 2051 at Treasuries plus 25 bps; par call thereafter
|
| Cusip: | 927804GJ7
|
|
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