By Andrea Heisinger
New York, May 18 - Alabama Power Co., a unit of the Southern Co., sold $450 million of notes (A2/A/A+) in two maturities on Wednesday, an informed source said.
The $200 million of 3.95% 10-year notes priced at 99.786 to yield 3.976% with a spread of Treasuries plus 82 basis points. This was at the low end of guidance in the 85 bps area.
The notes have a make-whole call at Treasuries plus 12.5 bps.
A second tranche was $250 million of 5.2% 30-year bonds priced at 99.863 to yield 5.209% with a 95 bps over Treasuries spread. The bonds also were priced at the tight end of talk in the 95 bps to 100 bps range.
The bonds have a make-whole call of Treasuries plus 15 bps.
Bookrunners for the 10-year notes were BNY Mellon Capital Markets LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC and Scotia Capital (USA) Inc. Those for the 30-year bonds were Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs and JPMorgan.
Morgan Keegan & Co. Inc. was a co-manager of the 10-year tranche.
Co-managers of the 30-year tranche were BB&T Capital Markets, Cabrera Capital Markets LLC, Loop Capital Markets LLC, Morgan Keegan and U.S. Bancorp Investments Inc.
Proceeds will be used to redeem $100 million of 5.875% senior notes due Feb. 1, 2046, $200 million of 5.875% notes due March 15, 2046 and $150 million of 6.375% notes due June 15, 2046.
The utility is based in Birmingham, Ala.
| Issuer: | Alabama Power Co.
|
| Issue: | Senior notes
|
| Amount: | $450 million
|
| Trade date: | May 18
|
| Settlement date: | May 24
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A+
|
|
|
| 10-year notes
|
| Amount: | $200 million
|
| Maturity: | June 1, 2021
|
| Bookrunners: | BNY Mellon Capital Markets LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC, Scotia Capital (USA) Inc.
|
| Co-manager: | Morgan Keegan & Co. Inc.
|
| Coupon: | 3.95%
|
| Price: | 99.786
|
| Yield: | 3.976%
|
| Spread: | Treasuries plus 82 bps
|
| Call: | Make-whole at Treasuries plus 12.5 bps
|
| Price talk: | 85 bps area
|
|
|
| 30-year bonds
|
| Amount: | $250 million
|
| Maturity: | June 1, 2041
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs, JPMorgan
|
| Co-managers: | BB&T Capital Markets, Cabrera Capital Markets LLC, Loop Capital Markets LLC, Morgan Keegan, U.S. Bancorp Investments Inc.
|
| Coupon: | 5.2%
|
| Price: | 99.863
|
| Yield: | 5.209%
|
| Spread: | Treasuries plus 95 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 95 to 100 bps
|
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