New Issue: Alabama Power sells $400 million 4.15% 30-year bonds at Treasuries plus 98 bps

By Aleesia Forni

Virginia Beach, Aug. 20 – Alabama Power Co. priced $400 million of 4.15% senior notes due 2044, series 2014A, on Wednesday with a spread of Treasuries plus 98 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.

Pricing came tighter than talk, which was set at Treasuries plus 100 bps to 115 bps.

The notes (A1/A/A+) sold at 99.204 to yield 4.197%.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used for general corporate purposes, including the company’s continuous construction program.

The electric subsidiary of Southern Co. is based in Birmingham, Ala.

Issuer:	Alabama Power Co.
Amount:	$400 million
Description:	Senior notes, series 2014A
Maturity:	Aug. 15, 2044
Bookrunners:	BofA Merrill Lynch, Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC
Co-managers:	BBVA Securities Inc., BNP Paribas Securities Corp., BNY Mellon Capital Markets LLC, Mizuho Securities USA Inc., Regions Securities LLC, Sterne Agee & Leach, Inc., U.S. Bancorp Investments, Inc.
Coupon:	4.15%
Price:	99.204
Yield:	4.197%
Spread:	Treasuries plus 98 bps
Make-whole call:	Treasuries plus 15 bps prior to Feb. 15, 2044, then callable at par
Trade date:	Aug. 20
Settlement date:	Aug. 26
Ratings:	Moody’s: A1
	Standard & Poor's: A
	Fitch: A+
Distribution:	SEC registered
Price talk:	Treasuries plus 100 bps to 115 bps

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