By Marisa Wong
Los Angeles, Aug. 8 – Virginia Electric and Power Co. priced $1 billion of fixed-rate senior notes (expected: A2/BBB+/A) in two parts, according to an FWP filing with the Securities and Exchange Commission.
The company priced $400 million of 5.3% 2023 series C notes due Aug. 15, 2033 at 99.891 to yield 5.314%, or with a spread of 128 basis points to Treasuries.
The $600 million of 5.7% 2023 series D notes due Aug. 15, 2053 priced at 99.642 to yield 5.725%, or with a spread of 150 bps to Treasuries.
Each of the notes will feature an optional make-whole call, followed by an optional par call. The par call date will be three months prior to maturity for the series C notes and six months prior to maturity for the series D notes.
BMO Capital Markets Corp., CIBC World Markets Corp., Deutsche Bank Securities Inc., Regions Securities LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Truist Securities, Inc., Mizuho Securities USA LLC, MUFG Securities Americas Inc. and TD Securities (USA) LLC are the joint bookrunners.
Proceeds will be used for general corporate purposes and to repay short-term debt, which as of July 31 included $1.3 billion of outstanding commercial paper with a weighted average yield of 5.532% per year and a weighted average days to maturity of about 31 days, according to a 424B5 filed earlier on Tuesday.
The public electric utility is based in Richmond, Va. Its parent company is Dominion Energy.
| Issuer: | Virginia Electric and Power Co.
|
| Amount: | $1 billion
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| Issue: | Senior notes
|
| Bookrunners: | BMO Capital Markets Corp., CIBC World Markets Corp., Deutsche Bank Securities Inc., Regions Securities LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Truist Securities, Inc., Mizuho Securities USA LLC, MUFG Securities Americas Inc. and TD Securities (USA) LLC
|
| Trustee: | U.S. Bank Trust Co., NA
|
| Counsel to issuer: | McGuireWoods LLP
|
| Counsel to underwriters: | Troutman Pepper Hamilton Sanders LLP
|
| Trade date: | Aug. 8
|
| Settlement date: | Aug. 10
|
| Expected ratings: | Moody’s: A2
|
| S&P: BBB+
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| Fitch: A
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| Distribution: | SEC registered
|
|
|
| 2023 series C notes
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| Amount: | $400 million
|
| Maturity: | Aug. 15, 2033
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| Coupon: | 5.3%
|
| Price: | 99.891
|
| Yield: | 5.314%
|
| Spread: | Treasuries plus 128 bps
|
| Call options: | Make-whole call at Treasuries plus 20 bps prior to May 15, 2033; par call after that
|
| Cusip: | 927804GM0
|
|
|
| 2023 series D notes
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| Amount: | $600 million
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| Maturity: | Aug. 15, 2053
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| Coupon: | 5.7%
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| Price: | 99.642
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| Yield: | 5.725%
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| Spread: | Treasuries plus 150 bps
|
| Call options: | Make-whole call at Treasuries plus 25 bps prior to Feb. 15, 2053; par call after that
|
| Cusip: | 927804GN8
|
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