Integrys Energy talks new $25-par fixed-to-floating junior subordinated notes around 6%

By Stephanie N. Rotondo

Phoenix, Aug. 12 - Integrys Energy Group Inc. intends to price an offering of at least $200 million of $25-par junior subordinated notes due Aug. 1, 2073, according to a prospectus filed with the Securities and Exchange Commission on Monday.

Price talk on the fixed-to-floating rate deal is around 6%, according to a trader. The trader said the issue is expected to be rated Baa2 by Moody's Investors Service and BBB by Standard & Poor's.

BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunning managers.

Interest will be payable at the fixed rate until Aug. 1, 2023, at which point the issue will begin to float at Libor plus a spread.

Once floating, the rate will be reset on a quarterly basis.

Interest will be paid on a quarterly basis. The company can defer payments on one or more occasions for up to 40 consecutive periods. However, the deferred interest will compound quarterly.

The notes become redeemable on of after Aug. 1, 2023 at par plus accrued interest. Additionally, the company has the option to call the issue in whole, but not in part, in the event of a tax or regulation change at par plus accrued interest, or if there is a rating agency event at 102% of par plus accrued interest.

The notes will be listed on the New York Stock Exchange.

Proceeds will be used to reduce short-term debt and for general corporate purposes.

Integrys is a Chicago-based diversified energy holding company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.