By Aleesia Forni
Virginia Beach, Sept. 21 – Kentucky Utilities Co. sold a $500 million two-part offering of first mortgage bonds (A1/A) in 10- and 30-year tranches, according to a market source.
There was $250 million of 3.3% 10-year notes issued at a price of 99.957 with a 3.305% yield.
The notes sold at Treasuries plus 110 basis points, tighter than talk set in the Treasuries plus 130 bps area.
Also, $250 million of 4.375% 30-year notes sold at 99.917 with a yield of 4.38% and a spread of Treasuries plus 135 bps.
Pricing was tighter than the Treasuries plus 155 bps area talk.
J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, MUFG and UBS Securities LLC are the joint bookrunners.
Proceeds will be used to repay short-term debt, to repay $250 million of 1.625% mortgage bonds due Nov. 1, 2015 and for other general corporate purposes.
The electric utility is based in Lexington, Ky.
| Issuer: | Kentucky Utilities Co.
|
| Issue: | First mortgage bonds
|
| Amount: | $500 million
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, MUFG, UBS Securities LLC
|
| Trade date: | Sept. 21
|
| Settlement date: | Sept. 28
|
| Ratings: | Moody’s: A1
|
| Standard & Poor’s: A
|
| Distribution: | SEC registered
|
|
|
| 10-year bonds
|
| Amount: | $250 million
|
| Maturity: | Oct. 1, 2025
|
| Coupon: | 3.3%
|
| Price: | 99.957
|
| Yield: | 3.305%
|
| Spread: | Treasuries plus 110 bps
|
| Price talk: | Treasuries plus 130 bps area
|
|
|
| 30-year bonds
|
| Amount: | $250 million
|
| Maturity: | Oct. 1, 2045
|
| Coupon: | 4.375%
|
| Price: | 99.917
|
| Yield: | 4.38%
|
| Spread: | Treasuries plus 135 bps
|
| Price talk: | Treasuries plus 155 bps area
|
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