By Paul A. Harris
St. Louis, June 21 - Kansas Gas & Electric Co. priced a split-rated $320 million issue of secured facility bonds, series 2005, due March 29, 2021 (Baa3/BB-/BBB-) at par to yield 5.647%, according to market sources.
The bonds came at a spread to Treasuries of 160 basis points, tight to the Treasuries plus 162.5 bps price talk.
Credit Suisse First Boston ran the books for the Rule 144A with registration rights issue. The co-managers were ABN Amro, Citigroup, Barclays Capital, Deutsche Bank Securities, Piper Jaffray and Hibernia.
Proceeds will be used to refund existing secured facility bonds totaling $238 million and to defray other commissions.
The bonds are secured by rent and other payments made by the utility as lessee of a 50% interest in the LaCygne Unit 2 coal-fired generating plant.
The utility is based in Wichita, Kan.
| Issuer: | Kansas Gas & Electric Co.
|
| Amount: | $320 million
|
| Maturity: | March 29, 2021
|
| Average life: | 10 years
|
| Security description: | Secured facility bonds, series 2005
|
| Bookrunner: | Credit Suisse First Boston
|
| Co-managers: | ABN Amro, Citigroup, Barclays Capital, Deutsche Bank Securities, Piper Jaffray, Hibernia
|
| Coupon: | 5.647%
|
| Price: | Par
|
| Yield: | 5.647%
|
| Spread: | 160 basis points
|
| Call protection: | Callable in 10 years at par
|
| Trade date: | June 21
|
| Settlement date: | June 30
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BB-
|
| Fitch: BBB-
|
| Price talk: | Treasuries plus 162.5 bps
|
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