Southwestern Public Service prices; credit spreads tighten; Barclays tightens; Google too

By Cristal Cody

Eureka Springs, Ark., Aug. 5 – Southwestern Public Service Co. tapped the high-grade primary market on Friday, capping off a week of strong issuance.

Southwestern Public Service priced $300 million of 3.4% 30-year first mortgage bonds at 99.831 to yield 3.409%, according to an FWP filing with the Securities and Exchange Commission on Friday.

The series 4 bonds (A2/A/A-) priced with a spread of 110 bps over Treasuries.

KeyBanc Capital Markets Inc., Mizuho Securities USA Inc., US Bancorp Investments Inc. and CIBC World Markets Corp. were the bookrunners.

Proceeds will be used to repay short-term borrowings, to fund about $150 million of the upcoming maturity of $200 million principal outstanding series E 5.6% senior notes due Oct. 1, 2016 and for general corporate purposes.

Amarillo, Texas-based Southwestern Public Service generates, purchases, distributes and sells electricity in portions of Texas and New Mexico.

The Markit CDX North American Investment Grade index closed 3 basis points tighter at a spread of 70 bps.

In the secondary market, Barclays plc’s notes priced on Wednesday traded about 8 bps to 10 bps better than issuance.

Google holding company Alphabet Inc.’s 1.998% notes due 2026 improved about 1 bp earlier on Friday.

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