Published on 11/6/2023 in the Prospect News Investment Grade Daily.
New Issue: Alabama Power sells $300 million 5.85% 10-year notes at 120 bps spread
By Wendy Van Sickle
Columbus, Ohio, Nov. 6 – Alabama Power Co. priced $300 million of 5.85% 10-year series 2023B senior notes (A1/A-/A+) on Monday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 99.924 to yield 5.86%, with a spread of Treasuries plus 120 basis points.
There will be an optional make-whole call at Treasuries plus 20 bps until May 15, 2033 followed by a par call.
Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and U.S. Bancorp Investments, Inc. are the active bookrunners. RBC Capital Markets, LLC is a passive bookrunner.
Proceeds will be used to repay all or a portion of the company’s $300 million series 2013A 3.55% senior notes due Dec. 1, 2023. Any remaining proceeds will be used for general corporate purposes, including for the company’s continuous construction program.
The issuer is an electric utility based in Birmingham, Ala., and a wholly owned subsidiary of Southern Co.
| Issuer: | Alabama Power Co.
|
| Amount: | $300 million
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| Issue: | Series 2023B senior notes
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| Maturity: | Nov. 15, 2033
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| Active bookrunners: | Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and U.S. Bancorp Investments, Inc.
|
| Passive bookrunner: | RBC Capital Markets, LLC
|
| Co-managers: | BMO Capital Markets Corp., Huntington Securities, Inc., Santander US Capital Markets LLC, Loop Capital Markets LLC, Siebert Williams Shank & Co., LLC, FHN Financial Securities Corp., Hancock Whitney Investment Services, Inc., Regions Securities LLC, C.L. King & Associates, Inc. and Security Capital Brokerage, Inc.
|
| Trustee: | Regions Bank
|
| Counsel to issuer: | Balch & Bingham LLP and Troutman Pepper Hamilton Sanders LLP
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| Counsel to underwriters: | Hunton Andrews Kurth LLP
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| Coupon: | 5.85%
|
| Price: | 99.924
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| Yield: | 5.86%
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| Spread: | Treasuries plus 120 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until May 15, 2033, then a par call
|
| Trade date: | Nov. 6
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| Settlement date: | Nov. 9
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| Ratings: | Moody’s: A1
|
| S&P: A-
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| Fitch: A+
|
| Distribution: | SEC registered
|
| Cusip: | 010392GB8
|
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