By Andrea Heisinger
New York, June 19 - Delmarva Power & Light Co. priced $250 million of 4% 30-year first mortgage bonds on Tuesday at a spread of 130 basis points over Treasuries, a source said.
The bonds were sold at the tight end of guidance in the 135 bps area.
The paper (Baa1/A-/A) was priced at 99.449 to yield 4.032%. There is a make-whole call at 20 bps over Treasuries.
J.P. Morgan Securities LLC was the active bookrunner. Passive bookrunners were Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc.
The co-manager was Williams Capital Group LP.
Proceeds will be used to repay $216 million of commercial paper issued to temporarily fund capital expenditures and working capital, to fund a $65.7 million redemption of tax-exempt bonds issued by the Delaware Economic Development Authority, to fund a $31 million redemption of tax-exempt bonds issued by DEDA, and for general corporate purposes.
Delmarva, an electric and natural gas utility based in Wilmington, Del., was last in the market with a $250 million sale of five-year notes on Nov. 18, 2008.
| Issuer: | Delmarva Power & Light Co.
|
| Issue: | First mortgage bonds
|
| Amount: | $250 million
|
| Maturity: | June 1, 2042
|
| Bookrunners: | J.P. Morgan Securities LLC (active), Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc. (passive)
|
| Co-manager: | Williams Capital Group LP
|
| Coupon: | 4%
|
| Price: | 99.449
|
| Yield: | 4.032%
|
| Spread: | Treasuries plus 130 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Trade date: | June 19
|
| Settlement date: | June 26
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
| Fitch: A
|
| Price talk: | 135 bps area
|
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