Published on 3/28/2023 in the Prospect News Investment Grade Daily.
New Issue: Virginia Electric and Power sells $1.5 billion of notes due 2033, 2053
By Wendy Van Sickle
Columbus, Ohio, March 28 – Virginia Electric and Power Co. priced $1.5 billion of senior notes (A2/BBB+/A) in two tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $750 million of 5% 10-year series A notes at 99.72 to yield 5.036%, or 150 basis points over Treasuries.
Virginia Electric priced $750 million of 5.45% 30-year series B notes at 99.327 to yield 5.496%. The bonds priced with a spread of 175 bps over Treasuries.
Barclays, Mizuho Securities USA LLC, MUFG Securities Americas Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, BMO Capital Markets Corp., CIBC World Markets Corp., Deutsche Bank Securities Inc., Regions Securities LLC and Truist Securities, Inc. were the bookrunners.
Proceeds will be used for general corporate purposes and to repay short-term debt, including commercial paper.
The electric utility is based in Richmond, Va.
| Issuer: | Virginia Electric and Power Co.
|
| Amount: | $1.5 billion
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| Issue: | Senior notes
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| Bookrunners: | Barclays, Mizuho Securities USA LLC, MUFG Securities Americas Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, BMO Capital Markets Corp., CIBC World Markets Corp., Deutsche Bank Securities Inc., Regions Securities LLC and Truist Securities, Inc.
|
| Trustee: | U.S. Bank NA
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| Counsel to issuer: | McGuireWoods LLP
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| Counsel to underwriters: | Troutman Pepper Hamilton Sanders LLP
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| Trade date: | March 28
|
| Settlement date: | March 30
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| Ratings: | Moody’s: A2
|
| S&P: BBB+
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| Fitch: A
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| Distribution: | SEC registered
|
|
|
| 10-year notes
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| Amount: | $750 million
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| Maturity: | April 1, 2033
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| Coupon: | 5%
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| Price: | 99.72
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| Yield: | 5.036%
|
| Spread: | Treasuries plus 150 bps
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| Call feature: | Make-whole call before Jan. 1, 2033 at Treasuries plus 25 bps; par call thereafter
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| Cusip: | 927804GK4
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|
|
| 30-year notes
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| Amount: | $750 million
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| Maturity: | April 1, 2053
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| Coupon: | 5.45%
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| Price: | 99.327
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| Yield: | 5.496%
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| Spread: | Treasuries plus 175 bps
|
| Call feature: | Make-whole call before Oct. 1, 2052 at Treasuries plus 30 bps; par call thereafter
|
| Cusip: | 927804GL2
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