By Lisa Kerner
Charlotte, N.C., Aug. 18 - El Paso Electric Co.'s Rio Grande Resources Trust II on Tuesday sold $110 million of senior notes in a private placement, according to a form 8-K filing with the Securities and Exchange Commission.
The notes were issued in three series:
• $15 million of 3.67% series A senior notes due 2015;
• $50 million of 4.47% series B senior notes due 2017; and
• $45 million of 5.04% series C senior notes due 2020.
Rio Grande may redeem the notes in whole or in part at any time at a redemption price equal to 100% of the principal amount to be redeemed plus a make-whole amount. The make-whole call is at Treasuries plus 50 basis points.
Purchasers include Hartford Life & Accident Insurance Co., United of Omaha Life Insurance Co., Great West Life & Annuity Insurance Co., Southern Farm Bureau Life Insurance Co. and American United Life Insurance Co.
Rio Grande will use the proceeds from the sale of the notes to repay amounts borrowed under its joint revolving credit facility with El Paso Electric, an El Paso-based utility company.
| Issuer: | Rio Grande Resources Trust II
|
| Guarantor: | El Paso Electric Co.
|
| Issue: | Senior notes
|
| Amount: | $110 million
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Settlement: | Aug. 17
|
| Distribution: | Private placement
|
|
|
| Series A
|
| Amount: | $15 million
|
| Maturity: | Aug. 15, 2015
|
| Coupon: | 3.67%
|
|
|
| Series B
|
| Amount: | $50 million
|
| Maturity: | Aug. 15, 2017
|
| Coupon: | 4.47%
|
|
|
| Series C
|
| Amount: | $45 million
|
| Maturity: | Aug. 15, 2020
|
| Coupon: | 5.04%
|
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