By Marisa Wong
Los Angeles, April 1 – Public Service Co. of Colorado priced a $1.2 billion offering of first mortgage bonds (expected: A1/A/A+) in two parts, according to an FWP filing with the Securities and Exchange Commission.
The company priced $450 million of 5.35% series 41 bonds due May 15, 2034 at 99.751 to yield 5.381%, or Treasuries plus 105 basis points, and $750 million of 5.75% series 42 bonds due May 15, 2054 at 99.747 to yield 5.767%, or Treasuries plus 130 bps.
The series 41 bonds are straight bonds, and the series 42 bonds are marked as green bonds.
Call protection for both notes includes make-whole call terms and par call options a number of months before each maturity date.
CIBC World Markets Corp., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Mizuho Securities USA LLC led the sale.
Fixed-income investor calls regarding the company’s sustainability program were held on Thursday, according to a market source.
Proceeds will be used to repay short-term borrowings and for other general corporate purposes, on the first series. For the green bonds, proceeds will be used for eligible green expenditures.
The Denver-based electric utility is a subsidiary of Xcel Energy Inc.
| Issuer: | Public Service Co. of Colorado
|
| Amount: | $1.2 billion
|
| Description: | First mortgage bonds
|
| Bookrunners: | CIBC World Markets Corp., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Mizuho Securities USA LLC
|
| Co-managers: | Loop Capital Markets LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC and RBC Capital Markets, LLC
|
| Trustee: | U.S. Bank Trust Co., NA
|
| Counsel to issuer: | Faegre Drinker Biddle & Reath LLP and Jones Day
|
| Counsel to underwriters: | Hunton Andrews Kurth LLP
|
| Trade date: | April 1
|
| Settlement date: | April 4
|
| Expected ratings: | Moody’s: A1
|
| S&P: A
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| Series 41
|
| Amount: | $450 million
|
| Maturity: | May 15, 2034
|
| Coupon: | 5.35%
|
| Price: | 99.751
|
| Yield: | 5.381%
|
| Spread: | Treasuries plus 105 bps
|
| Call options: | Make-whole call at Treasuries plus 20 bps prior to Nov. 15, 2033; par call after that
|
| Cusip: | 744448CZ2
|
|
|
| Series 42
|
| Amount: | $750 million
|
| Maturity: | May 15, 2054
|
| Coupon: | 5.75%
|
| Price: | 99.747
|
| Yield: | 5.767%
|
| Spread: | Treasuries plus 130 bps
|
| Call options: | Make-whole call at Treasuries plus 20 bps prior to Nov. 15, 2053; par call after that
|
| Cusip: | 744448DA6
|
|
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