Published on 2/28/2023 in the Prospect News Investment Grade Daily.
New Issue: Florida Power prices $2.5 billion of five-, 10-, 30-year bonds
By Wendy Van Sickle
Columbus, Ohio, Feb. 28 – Florida Power & Light Co. priced $2.5 billion of first mortgage bonds (Aa2/A+/AA-) in three parts on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The issuer priced $1 billion of 5.05% first mortgage bonds due April 1, 2028 at 99.87 to yield 5.078%, or a spread of 90 basis points over Treasuries.
The company sold $750 million of 5.1% first mortgage bonds due April 1, 2033 at 99.838 to yield 5.12%, or a spread of 120 bps over Treasuries.
Finally, Florida Power priced $750 million of 5.3% first mortgage bonds due April 1, 2053 at 99.502 to yield 5.333%, or a spread of 140 bps over Treasuries.
BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Goldman Sachs & Co. LLC, KeyBanc Capital Markets Inc., Mizuho Securities USA LLC, ANZ Securities, Inc., Barclays, BBVA Securities Inc., BofA Securities, Inc., Credit Suisse Securities (USA) LLC, PNC Capital Markets LLC, Fifth Third Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., RBC Capital Markets, LLC, Regions Securities LLC, Santander US Capital Markets LLC, SMBC Nikko Securities America, Inc., Truist Securities, Inc. and Wells Fargo Securities, LLC are the joint bookrunning managers for the offering.
Proceeds are intended to be used for general corporate purposes, including the repayment of the company’s outstanding commercial paper. As of Feb. 27, 2023, there was $2.227 billion of outstanding commercial paper, which had maturities of up to 16 days and annual interest rates ranging from 4.45% to 4.6%.
Florida Power & Light is a Juno Beach, Fla.-based electric utility.
| Issuer: | Florida Power & Light Co.
|
| Amount: | $2.5 billion
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| Bookrunners: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Goldman Sachs & Co. LLC, KeyBanc Capital Markets Inc., Mizuho Securities USA LLC, ANZ Securities, Inc., Barclays, BBVA Securities Inc., BofA Securities, Inc., Credit Suisse Securities (USA) LLC, PNC Capital Markets LLC, Fifth Third Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., RBC Capital Markets, LLC, Regions Securities LLC, Santander US Capital Markets LLC, SMBC Nikko Securities America, Inc., Truist Securities, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | Academy Securities, Inc., Commerz Markets LLC, DNB Markets, Inc., DZ Financial Markets LLC, Hancock Whitney Investment Services, Inc., HSBC Securities (USA) Inc., Huntington Securities, Inc., Intesa Sanpaolo SpA, Loop Capital Markets LLC, Mischler Financial Group, Inc., nabSecurities, LLC, Natixis Securities Americas LLC, SG Americas Securities, LLC, Siebert Williams Shank & Co., LLC and WR Securities, LLC
|
| Junior co-managers: | C.L. King & Associates, Inc., Drexel Hamilton, LLC, Guzman & Co., MFR Securities, Inc. and R. Seelaus & Co., Inc.
|
| Trustee: | Bank of New York Mellon
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| Counsel to issuer: | Morgan, Lewis & Bockius LLP and Squire Patton Boggs (US) LLP
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| Counsel to underwriters: | Hunton Andrews Kurth LLP
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| Trade date: | Feb. 28
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| Settlement date: | March 3
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| Expected ratings: | Moody’s: Aa2
|
| S&P: A+
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| Fitch: AA-
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| Distribution: | SEC registered
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|
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| 2028 bonds
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| Amount: | $1 billion
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| Issue: | First mortgage bonds
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| Maturity: | April 1, 2028
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| Coupon: | 5.05%
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| Price: | 99.87
|
| Yield: | 5.078%
|
| Spread: | Treasuries plus 90 bps
|
| Call features: | Make-whole call before March 1, 2028 at Treasuries plus 15 bps; thereafter at par plus interest
|
| Cusip: | 341081GK7
|
|
|
| 2033 bonds
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| Amount: | $750 million
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| Issue: | First mortgage bonds
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| Maturity: | April 1, 2033
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| Coupon: | 5.1%
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| Price: | 99.838
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| Yield: | 5.12%
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| Spread: | Treasuries plus 120 bps
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| Call features: | Make-whole call before Jan. 1, 2033 at Treasuries plus 20 bps; thereafter at par plus interest
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| Cusip: | 341081GL5
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|
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| 2053 bonds
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| Amount: | $750 million
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| Issue: | First mortgage bonds
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| Maturity: | April 1, 2053
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| Coupon: | 5.3%
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| Price: | 99.502
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| Yield: | 5.333%
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| Spread: | Treasuries plus 140 bps
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| Call features: | Make-whole call before Oct. 1, 2052 at Treasuries plus 25 bps; thereafter at par plus interest
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| Cusip: | 341081GM3
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