By Cristal Cody
Tupelo, Miss., Jan. 8 – Georgia Power Co. priced $1.5 billion of new and reopened senior notes (Baa1/A-/A-) in three tranches on Wednesday, according to a market source and FWP filings with the Securities and Exchange Commission.
The company sold $700 million of 2.1% notes due July 30, 2023 at a 50 basis points over Treasuries spread.
Initial price talk was at the Treasuries plus 70 bps area.
The notes were placed at 99.979 to yield 2.106%.
A $500 million tranche of 3.7% 30-year notes priced at 99.674 to yield 3.718%, or a spread of 135 bps over Treasuries, compared to initial guidance in the Treasuries plus 150 bps to 155 bps area.
Georgia Power also priced a $300 million tap of its 2.65% notes due Sept. 15, 2029 at 98.516 to yield 2.826% and a Treasuries plus 95 bps spread.
Initial talk was in the Treasuries plus 110 bps area.
The company originally sold $350 million of the notes on Sept. 4, 2019 at 99.877 to yield 2.664%, or a spread of 120 bps over Treasuries. The total outstanding is now $650 million.
Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA Inc. and MUFG were the bookrunners.
Proceeds will be used to repay outstanding commercial paper borrowings, which totaled approximately $4 billion as of Tuesday. Amy remaining proceeds will be used for general corporate purposes.
The electric utility is based in Atlanta.
| Issuer: | Georgia Power Co.
|
| Amount: | $1.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA Inc. and MUFG
|
| Co-managers: | CIBC World Markets Corp., Commerz Markets LLC, Fifth Third Securities, Inc., TD Securities (USA) LLC, Academy Securities, Inc., CastleOak Securities, LP, Penserra Securities LLC, R. Seelaus & Co., LLC and Siebert Williams Shank & Co., LLC
|
| Trade date: | Jan. 8
|
| Settlement date: | Jan. 10
|
| Ratings: | Moody’s: Baa1
|
| S&P: A-
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $700 million
|
| Maturity: | July 30, 2023
|
| Description: | Series 2020A senior notes
|
| Coupon: | 2.1%
|
| Price: | 99.979
|
| Yield: | 2.106%
|
| Spread: | Treasuries plus 50 bps
|
| Call feature: | Make-whole call at Treasuries plus 10 bps
|
| Price guidance: | Treasuries plus 70 bps area
|
|
|
| 30-year notes
|
| Amount: | $500 million
|
| Maturity: | Jan. 30, 2050
|
| Description: | Series 2020B senior notes
|
| Coupon: | 3.7%
|
| Price: | 99.674
|
| Yield: | 3.718%
|
| Spread: | Treasuries plus 135 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before July 30, 2049; thereafter at par
|
| Price guidance: | Treasuries plus 150 bps-155 bps area
|
|
|
| 10-year notes
|
| Amount: | $300 million reopening
|
| Maturity: | Sept. 15, 2029
|
| Description: | Series 2019B senior notes
|
| Coupon: | 2.65%
|
| Price: | 98.516
|
| Yield: | 2.826%
|
| Spread: | Treasuries plus 95 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps before June 15, 2029; thereafter at par
|
| Price guidance: | Treasuries plus 110 bps area
|
| Total outstanding: | $650 million, including $350 million of notes priced Sept. 4, 2019 at 99.877 to yield 2.664%, or a spread of 120 bps over Treasuries
|
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