By Devika Patel
Knoxville, Tenn., June 29 – El Paso Electric Co. reported that subsidiary Rio Grande Resources Trust II priced and concluded a $65 million private placement of 4.07% senior notes due Aug. 15, 2025 and the parent concluded a $125 million private placement of 4.22% senior notes due Aug. 25, 2028 on Thursday, according to an 8-K filed with the Securities and Exchange Commission.
The 2025 notes will be guaranteed by El Paso Electric.
U.S. Bancorp Investments Inc. and MUFG are the agents.
Proceeds will be used to repay short-term borrowings under the company’s revolving credit facility to finance nuclear fuel purchases, for working capital and for general corporate purposes.
The electric utility is based in El Paso, Texas.
| Issue: | Senior notes
|
| Amount: | $190 million
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| Agents: | U.S. Bancorp Investments Inc. and MUFG
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| Pricing date: | June 28
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| Settlement date: | June 28
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| Distribution: | Private placement
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|
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| 2025 notes
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| Issuer: | Rio Grande Resources Trust II
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| Guarantor: | El Paso Electric Co.
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| Amount: | $65 million
|
| Maturity: | Aug. 15, 2025
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| Coupon: | 4.07%
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|
|
| 2028 notes
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| Issuer: | El Paso Electric Co.
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| Amount: | $125 million
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| Maturity: | Aug. 15, 2028
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| Coupon: | 4.22%
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