By Lisa Kerner
Charlotte, N.C., March 6 - Empire District Electric Co. said it received commitments for an $88 million private placement of 3.58% first mortgage bonds due 2027.
The company expects to enter into definitive agreements for the placement on April 2.
The first settlement of $38 million is anticipated to occur on April 2, and the second settlement of $50 million is anticipated to occur on June 1, subject to customary closing conditions, according to an 8-K filing with the Securities and Exchange Commission.
Once issued, the bonds will have the same interest rate and will mature 15 years from the date of the first closing.
Proceeds will be used to redeem all $74.8 million principal amount of Empire's 7% first mortgage bonds due 2024, all $5.2 million of its 5.2% first mortgage bonds, pollution control series, due 2013 and all $8 million of its 5.3% first mortgage bonds, pollution control series, due 2013.
Any remaining proceeds would be used for general corporate purposes, the company said.
The bonds have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
The Joplin, Mo.-based utility company provides electricity, natural gas and water to customers in Missouri, Kansas, Oklahoma and Arkansas.
| Issuer: | Empire District Electric Co.
|
| Issue: | First mortgage bonds
|
| Amount: | $88 million
|
| Maturity: | 2027
|
| Coupon: | 3.58%
|
| Pricing date: | Feb. 29
|
| Settlement dates: | April 2 for $38 million, June 1 for $50 million
|
| Distribution: | Private placement
|
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