By Cristal Cody
Tupelo, Miss., May 19 – Kentucky Utilities Co. priced an upsized $500 million of 3.3% 30-year first mortgage bonds (A1/A) on Tuesday at a spread of Treasuries plus 190 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial guidance was in the 225 bps over Treasuries area.
The bonds priced at 99.509 to yield 3.326%.
The deal size was increased from $400 million.
Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and U.S. Bancorp Investments, Inc. were the bookrunners.
Proceeds will be used for general corporate purposes, including the repayment of debt.
Kentucky Utilities is an electric utility based in Lexington, Ky.
| Issuer: | Kentucky Utilities Co.
|
| Amount: | $500 million
|
| Description: | First mortgage bonds
|
| Maturity: | June 1, 2050
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and U.S. Bancorp Investments, Inc.
|
| Co-managers: | MUFG, PNC Capital Markets LLC, RBC Capital Markets, LLC and SunTrust Robinson Humphrey, Inc.
|
| Coupon: | 3.3%
|
| Price: | 99.509
|
| Yield: | 3.326%
|
| Spread: | Treasuries plus 190 bps
|
| Call features: | Make-whole call at price equal to greater of par and Treasuries plus 30 bps before Dec. 1, 2049; thereafter at par
|
| Trade date: | May 19
|
| Settlement date: | June 3
|
| Ratings: | Moody’s: A1
|
| S&P: A
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 225 bps area
|
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