Published on 5/1/2023 in the Prospect News Investment Grade Daily.
New Issue: Georgia Power sells $1.75 billion of notes in parts due 2028, 2033
By Wendy Van Sickle
Columbus, Ohio, May 1 – Georgia Power Co. priced $1.75 billion of notes on Monday in dual tranches due 2028 and 2033 (Baa1/BBB+/BBB+), according to two FWP filings with the Securities and Exchange Commission.
The utility priced $750 million of 4.65% five-year series 2023A senior notes at 99.874 to yield 4.678%, or a spread of 105 basis points over Treasuries. These notes feature a make-whole call prior to March 16, 2028 and then a par call.
The company also priced $1 billion of 4.95% 10-year series 2023B senior notes at 99.826 to yield 4.972%, or a spread of 140 bps over Treasuries. These notes have a make-whole call prior to Nov. 17, 2032 and then a par call.
BofA Securities Inc., Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC, Scotia Capital (USA) Inc., Truist Securities Inc. and Wells Fargo Securities, LLC are the joint bookrunning managers for both offers.
Proceeds will be used to repay all or a portion of (i) $250 million outstanding under an uncommitted credit facility and (ii) $810 million outstanding commercial paper borrowings. Any remaining net proceeds will be used for other general corporate purposes, including the company’s continuous construction program.
Borrowings under the uncommitted credit facility bear interest at a floating rate (5.7% per annum as of March 31) and are payable on demand, after specified notice by the lender.
Georgia Power is an Atlanta-based electric utility company.
| Issuer: | Georgia Power Co.
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| Amount: | $1.75 billion
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| Issue: | Senior notes
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| Bookrunners: | BofA Securities Inc., Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC, Scotia Capital (USA) Inc., Truist Securities Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | BMO Capital Markets Corp., KeyBanc Capital Markets Inc., Loop Capital Markets LLC, Santander US Capital Markets LLC, Synovus Securities, Inc., Regions Securities LLC, C.L. King & Associates, Inc., CastleOak Securities, LP, Hancock Whitney Investment Services, Inc., Mischler Financial Group, Inc., Siebert Williams Shank & Co., LLC, AmeriVet Securities Inc. and Security Capital Brokerage, Inc.
|
| Trustee: | Computershare Trust Co., NA
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| Counsel to issuer: | Troutman Pepper Hamilton Sanders LLP
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| Counsel to underwriters: | Hunton Andrews Kurth LLP
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| Trade date: | May 1
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| Settlement date: | May 4
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| Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Fitch: BBB+
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| Distribution: | SEC registered
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|
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| 2028 notes
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| Amount: | $750 million
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| Maturity: | May 16, 2028
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| Coupon: | 4.65%
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| Price: | 99.874
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| Yield: | 4.678%
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| Spread: | Treasuries plus 105 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps prior to March 16, 2028, then at par
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| Cusip: | 373334KS9
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|
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| 2033 notes
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| Amount: | $1 billion
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| Maturity: | May 17, 2033
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| Coupon: | 4.95%
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| Price: | 99.826
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| Yield: | 4.972%
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| Spread: | Treasuries plus 140 bps
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| Call features: | Make-whole call at Treasuries plus 25 bps prior to Nov. 17, 2032, then at par
|
| Cusip: | 373334KT7
|
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