By Wendy Van Sickle
Columbus, Ohio, Jan. 2 – Virginia Electric and Power Co. priced $1 billion of fixed-rate senior notes (expected: A2/BBB+/A) in two parts on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $500 million of 5% 2024 series A notes due Jan. 15, 2034 at 99.291 to yield 5.091%, or with a spread of 115 basis points over Treasuries.
The $500 million of 5.35% 2024 series B notes due Jan. 15, 2054 priced at 99.746 to yield 5.367%, or with a spread of 127 bps over 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 A notes and six months prior to maturity for the series B notes.
BNP Paribas Securities Corp., BofA Securities, Inc., Mizuho Securities USA LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, CIBC World Markets Corp. and Regions Securities LLC are the joint bookrunners.
Proceeds will be used for general corporate purposes and to repay short-term debt, including $375 million in outstanding commercial paper.
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: | BNP Paribas Securities Corp., BofA Securities, Inc., Mizuho Securities USA LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, CIBC World Markets Corp. and Regions Securities LLC
|
| Co-manager: | Loop Capital Markets LLC
|
| Trustee: | U.S. Bank Trust Co., NA
|
| Counsel to issuer: | McGuireWoods LLP
|
| Counsel to underwriters: | Troutman Pepper Hamilton Sanders LLP
|
| Trade date: | Jan. 2
|
| Settlement date: | Jan. 8
|
| Expected ratings: | Moody’s: A2
|
| S&P: BBB+
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Notes due 2034
|
| Amount: | $500 million
|
| Maturity: | Jan. 15, 2034
|
| Coupon: | 5%
|
| Price: | 99.291
|
| Yield: | 5.091%
|
| Spread: | Treasuries plus 115 bps
|
| Call options: | Make-whole call at Treasuries plus 20 bps prior to Nov. 15, 2033; par call after that
|
| Cusip: | 927804GP3
|
|
|
| Notes due 2054
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| Amount: | $500 million
|
| Maturity: | Jan. 15, 2054
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| Coupon: | 5.35%
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| Price: | 99.746
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| Yield: | 5.367%
|
| Spread: | Treasuries plus 127 bps
|
| Call options: | Make-whole call at Treasuries plus 20 bps prior to July 15, 2053; par call after that
|
| Cusip: | 927804GQ1
|
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