By Devika Patel
Knoxville, Tenn., Dec. 4 – Spire Inc. subsidiary Spire Alabama Inc. priced a $75 million private placement of senior notes on Friday, according to an 8-K filed with the Securities and Exchange Commission. The deal raised $30 million on Friday and will raise $45 million on Jan. 12.
The $30 million first-tranche 2017A note is due Jan. 15, 2058 and accrues interest at 4.02% per year.
The $45 million second-tranche 2017B note is due Jan. 15, 2048 and accrues interest at 3.92% per year.
Both notes have a make-whole call option at Treasuries plus 50 basis points.
Proceeds will be used for general corporate purposes.
The company has the option to issue one or more additional series of notes under the master note purchase agreement with the investors, provided the aggregate principal amount of notes issued under the agreement does not exceed $1 billion.
St. Louis-based Spire is a public gas utility holding company.
| Issuer: | Spire Alabama Inc.
|
| Issue: | Senior notes
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| Amount: | $75 million
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| Call option: | Make-whole call at Treasuries plus 50 bps
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| Pricing date: | Dec. 1
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| Distribution: | Private placement
|
|
|
| 2017A notes
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| Amount: | $30 million
|
| Maturity: | Jan. 15, 2058
|
| Coupon: | 4.02%
|
| Settlement date: | Dec. 1
|
|
|
| 2017B notes
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| Amount: | $45 million
|
| Maturity: | Jan. 15, 2048
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| Coupon: | 3.92%
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| Settlement date: | Jan. 12
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