Published on 3/18/2019 in the Prospect News Investment Grade Daily.
New Issue: Kentucky Utilities sells $300 million tap of 4.375% bonds due 2045 at 125 bps spread
By Cristal Cody
Tupelo, Miss., March 18 – Kentucky Utilities Co. priced a $300 million tap of its 4.375% first mortgage bonds due Oct. 1, 2045 (A1/A-) on Monday at a Treasuries plus 125 basis points spread, according to an FWP filing with the Securities and Exchange Commission.
The bonds priced at 101.845 to yield 4.257%.
The notes were first issued in a $250 million offering on Sept. 28, 2015 at 99.917 with a yield of 4.38% and a spread of Treasuries plus 135 bps. The total outstanding is now $550 million.
BofA Merrill Lynch, Mizuho Securities (USA) LLC, MUFG, RBC Capital Markets, LLC and Scotia Capital (USA) Inc. were the bookrunners.
Proceeds from the reopening will be used to repay short-term debt and for other general corporate purposes.
Kentucky Utilities is an electric utility based in Lexington, Ky.
| Issuer: | Kentucky Utilities Co.
|
| Amount: | $300 million reopening
|
| Description: | First mortgage bonds
|
| Maturity: | Oct. 1, 2045
|
| Bookrunners: | BofA Merrill Lynch, Mizuho Securities (USA) LLC, MUFG, RBC Capital Markets, LLC and Scotia Capital (USA) Inc.
|
| Co-managers: | BMO Capital Markets Corp., BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC and U.S. Bancorp Investments, Inc.
|
| Coupon: | 4.375%
|
| Price: | 101.845
|
| Yield: | 4.257%
|
| Spread: | Treasuries plus 125 bps
|
| Call features: | Make-whole call at price equal to greater of par and Treasuries plus 25 bps before April 1, 2045; thereafter at par
|
| Trade date: | March 18
|
| Settlement date: | April 1
|
| Ratings: | Moody’s: A1
|
| S&P: A-
|
| Distribution: | SEC registered
|
| Total outstanding: | $550 million, including $250 million of bonds issued Sept. 28, 2015 at 99.917 with a yield of 4.38% and a spread of Treasuries plus 135 bps
|
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