By Andrea Heisinger
New York, Nov. 9 - Kentucky Utilities Co. gave terms for its $1.5 billion of notes (A2/A/A+) in three tranches that priced late on Monday, a source said Tuesday.
The $250 million of 1.625% five-year notes priced at 99.65 to yield 1.699% with a spread of Treasuries plus 58 basis points. The notes have a make-whole call at 10 bps over Treasuries.
A $500 million tranche of 3.25% 10-year notes priced at 99.622 to yield 3.295% with a spread of Treasuries plus 75 bps. There is a make-whole call of Treasuries plus 15 bps.
A $750 million tranche of 5.125% 30-year bonds was sold at 98.915 to yield 5.197% with a spread of Treasuries plus 108 bps. This tranche has a make-whole call at Treasuries plus 20 bps.
Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC were the bookrunners.
The deal was sold under Rule 144A.
The electric utility is based in Lexington, Ky.
| Issuer: | Kentucky Utilities Co.
|
| Issue: | Notes
|
| Amount: | $1.5 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC
|
| Distribution: | Rule 144A
|
| Trade date: | Nov. 8
|
| Settlement date: | Nov. 16
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A+
|
|
|
| Five-year notes
|
| Amount: | $250 million
|
| Maturity: | Nov. 1, 2015
|
| Coupon: | 1.625%
|
| Price: | 99.65
|
| Yield: | 1.699%
|
| Spread: | Treasuries plus 58 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Nov.1, 2020
|
| Coupon: | 3.25%
|
| Price: | 99.622
|
| Yield: | 3.295%
|
| Spread: | Treasuries plus 75 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
|
|
| 30-year bonds
|
| Amount: | $750 million
|
| Maturity: | Nov. 1, 2040
|
| Coupon: | 5.125%
|
| Price: | 98.915
|
| Yield: | 5.197%
|
| Spread: | Treasuries plus 108 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
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