By Aleesia Forni
Virginia Beach, Nov. 7 - Delmarva Power & Light Co. priced $300 million of 3.5% first mortgage bonds due 2023 with a spread of Treasuries plus 90 basis points, according to a syndicate source and an FWP filing with the Securities and Exchange Commission.
The notes (A3/A/A) sold at the tight end of guidance.
Pricing was at 99.958 to yield 3.505%.
Citigroup Global Markets Inc., RBS Securities Inc. and Wells Fargo Securities LLC were the joint bookrunners.
BNY Mellon Capital Markets LLC and PNC Capital Markets LLC were the co-managers.
Proceeds will be used to repay $250 million of the company's 6.4% first mortgage bonds due Dec. 1, 2013. Remaining proceeds will be used 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 30-year mortgage bonds on June 19, 2012.
| Issuer: | Delmarva Power & Light Co.
|
| Amount: | $300 million
|
| Description: | First mortgage bonds
|
| Maturity: | Nov. 15, 2023
|
| Bookrunners: | Citigroup Global Markets Inc., RBS Securities Inc., Wells Fargo Securities LLC
|
| Co-managers: | BNY Mellon Capital Markets LLC, PNC Capital Markets LLC
|
| Coupon: | 3.5%
|
| Price: | 99.958
|
| Yield: | 3.505%
|
| Spread: | Treasuries plus 90 bps
|
| Trade date: | Nov. 7
|
| Settlement date: | Nov. 15
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A
|
| Fitch: A
|
| Make-whole call: | Treasuries plus 15 bps prior to Aug 15, 2023, then callable at par
|
| Price talk: | Treasuries plus 90 bps to 95 bps
|
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