New Issue: Alabama Power sells $600 million 3.125% 30-year notes at Treasuries plus 87.5 bps

By Devika Patel and Cristal Cody

Knoxville, Tenn., June 7 – Alabama Power Co. priced $600 million of 3.125% series 2021A senior notes due July 15, 2051 (A1/A/A+) on Monday, according to an FWP filed with the Securities and Exchange Commission.

The notes priced at 99.707 to yield 3.14%, with a spread of Treasuries plus 87.5 basis points.

The notes were talked to yield in the 110 bps area over Treasuries.

Barclays, BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and PNC Capital Markets LLC were the joint bookrunners.

Proceeds will be used to repay all or a portion of the company’s outstanding commercial paper borrowings.

The issuer is an electric utility based in Birmingham, Ala., and a wholly owned subsidiary of Southern Co.

Issuer:	Alabama Power Co.
Description:	Series 2021A senior notes
Amount:	$600 million
Maturity:	July 15, 2051
Bookrunners:	Barclays, BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and PNC Capital Markets LLC
Co-managers:	BBVA Securities Inc., FHN Financial Securities Corp., Regions Securities LLC, Synovus Securities, Inc., C.L. King & Associates Inc., MFR Securities Inc., Mischler Financial Group Inc. and Samuel A. Ramirez & Co. Inc.
Coupon:	3.125%
Price:	99.707
Yield:	3.14%
Spread:	Treasuries plus 87.5 bps
Call:	Make-whole call at Treasuries plus 15 bps until Jan. 15, 2051, then a par call
Trade date:	June 7
Settlement date:	June 11
Ratings:	Moody’s: A1
	S&P: A
	Fitch: A+
Distribution:	SEC registered
Guidance:	Treasuries plus 110 bps area

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.