By Lisa Kerner
Charlotte, N.C., June 30 – Allete, Inc. agreed to sell $160 million of first mortgage bonds to institutional buyers in a private placement on June 27.
The bonds will be issued on or about Sept.16, as follows:
• $60 million of 3.02% bonds due Sept. 15, 2021;
• $50 million of 3.74% bonds due Sept. 15, 2029; and
• $50 million of 4.39% bonds due Sept. 15, 2044.
Interest on the bonds is payable semiannually on March 15 and Sept. 15 beginning on March 15, 2015, according to a form 8-K filed with the Securities and Exchange Commission.
Allete may prepay all or a portion of the bonds at its discretion, subject to a make-whole provision. Starting six months before maturity, each series of bonds is redeemable at par plus accrued interest.
Proceeds will be used to fund utility capital expenditures and/or for general corporate purposes.
Allete, a Midwestern energy services provider, has headquarters in Duluth, Minn.
| Issuer: | Allete, Inc.
|
| Issue: | First mortgage bonds
|
| Amount: | $160 million
|
| Call: | Make-whole call, then at par starting six months before maturity
|
| Announced: | June 27
|
| Settlement date: | Sept. 16
|
| Distribution: | Private placement
|
|
|
| Seven-year bonds
|
| Amount: | $60 million
|
| Coupon: | 3.02%
|
| Maturity: | Sept. 15, 2021
|
|
|
| Fifteen-year bonds
|
| Amount: | $50 million
|
| Coupon: | 3.74%
|
| Maturity: | Sept. 15, 2029
|
|
|
| Thirty-year bonds
|
| Amount: | $50 million
|
| Coupon: | 4.39%
|
| Maturity: | Sept. 15, 2044
|
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