By Cristal Cody
Tupelo, Miss., June 8 – Northern States Power Co. sold $700 million of 2.6% green first mortgage bonds due June 1, 2051 (Aa3/A/A+) on Monday at 98.118 to yield 2.69%, or a spread of Treasuries plus 105 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price talk was at the 130 bps spread area.
Morgan Stanley & Co. LLC, MUFG, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, BofA Securities, Inc. and Mizuho Securities USA LLC were the bookrunners.
Proceeds will be used for eligible green expenditures.
The electric and natural gas utility is based in Minneapolis.
| Issuer: | Northern States Power Co.
|
| Amount: | $700 million
|
| Description: | Green first mortgage bonds
|
| Maturity: | June 1, 2051
|
| Bookrunners: | Morgan Stanley & Co. LLC, MUFG, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, BofA Securities, Inc. and Mizuho Securities USA LLC
|
| Senior co-managers: | BMO Capital Markets Corp. and BNY Mellon Capital Markets LLC
|
| Co-managers: | Fifth Third Securities Inc. and Loop Capital Markets LLC
|
| Coupon: | 2.6%
|
| Price: | 98.118
|
| Yield: | 2.69%
|
| Spread: | Treasuries plus 105 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps before Dec. 1, 2050; thereafter at par
|
| Trade date: | June 8
|
| Settlement date: | June 15
|
| Ratings: | Moody’s: Aa3
|
| S&P: A
|
| Fitch: A+
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 130 bps area
|
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