Published on 2/20/2024 in the Prospect News Investment Grade Daily.
New Issue: Georgia Power prices $1.4 billion notes in parts due 2027, 2034
By Wendy Van Sickle
Columbus, Ohio, Feb. 20 – Georgia Power Co. priced $1.4 billion of notes on Tuesday in tranches due 2027 and 2034 (expected ratings: Baa1/BBB+/A-), according to two FWP filings with the Securities and Exchange Commission.
The utility priced $500 million 5.004% three-year series 2024A senior notes at par to yield 5.004%, or a spread of 62 basis points over Treasuries.
The company also priced $900 million of 5.25% 10-year series 2024B senior notes at 99.679 to yield 5.291%, or a spread of 102 bps over Treasuries.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc. and Truist Securities, Inc. are the bookrunners.
The company intends to use proceeds from both series to repay all or a portion of the $250 million outstanding under an uncommitted credit facility and its outstanding commercial paper borrowings totaling roughly $475 million as of Feb. 19. Any remaining funds will be used for other general corporate purposes, including the company’s continuous construction program.
Georgia Power is an Atlanta-based electric utility and wholly owned subsidiary of Southern Co.
| Issuer: | Georgia Power Co.
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| Amount: | $1.4 billion
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| Issue: | Senior notes
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| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc. and Truist Securities, Inc.
|
| Co-managers: | BMO Capital Markets Corp., Santander US Capital Markets LLC, Siebert Williams Shank & Co., LLC, SMBC Nikko Securities America, Inc., AmeriVet Securities, Inc., C.L. King & Associates, Inc., CastleOak Securities, LP, Penserra Securities LLC, R. Seelaus & Co., LLC 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, New York
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| Trade date: | Feb. 20
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| Settlement date: | Feb. 23
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| Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Fitch: A-
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| Distribution: | SEC registered
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|
|
| Series 2024A notes
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| Amount: | $500 million
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| Maturity: | Feb. 23, 2027
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| Coupon: | 5.004%
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| Price: | Par
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| Yield: | 5.004%
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| Spread: | Treasuries plus 62 bps
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| Call features: | Make-whole call at Treasuries plus 10 bps prior to Jan. 23, 2027, then at par
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| Cusip: | 373334KV2
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|
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| Series 2024B notes
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| Amount: | $900 million
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| Maturity: | March 15, 2034
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| Coupon: | 5.25%
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| Price: | 99.679
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| Yield: | 5.291%
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| Spread: | Treasuries plus 102 bps
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| Call features: | Make-whole call at Treasuries plus 20 bps prior to Sept. 15, 2033, then at par
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| Cusip: | 373334KW0
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