By Paul A. Harris
St. Louis, Nov. 3 - Peoples Gas completed a $50 million private placement of non-callable first-mortgage notes in two tranches, according to a market source.
The shorter maturity five-year notes yield 7% and came at an approximate spread to Treasuries of 443 basis points.
Guidance was Treasuries plus 450 bps. However the notes were priced on a yield basis because of market conditions, the source added.
The company also priced 10-year notes to yield 8%.
Citigroup was the placement agent for the notes, which are expected to receive an A equivalent rating of NAIC 1.
Peoples Gas, a subsidiary of Integrys Energy Group, Inc., is a Chicago-based regulated utility.
| Issuer: | Peoples Gas
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| Amount: | $50 million in two tranches
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| Security description: | First-mortgage notes
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| Placement agent: | Citigroup
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|
|
| Five-year notes
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| Maturity: | Five years
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| Yield: | 7%
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| Call protection: | Non-callable
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| Spread: | 443 bps (approximate)
|
|
|
| 10-year notes
|
| Maturity: | 10 years
|
| Yield: | 8%
|
| Call protection: | Non-callable
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