By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, March 23 – Northern States Power Co. priced $850 million of green first mortgage bonds in two tranches (expected ratings: Aa3/A/A+) on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The $425 million of 2.25% bonds due April 1, 2031 priced at Treasuries plus 65 basis points compared to talk at Treasuries plus 90 bps area, according to a market source. These notes priced at 99.582 to yield 2.297%.
The $425 million of 3.2% bonds due April 1, 2052 priced at Treasuries plus 85 bps versus talk at Treasuries plus 110 bps area. These notes priced at 99.629 to yield 3.219%.
The bookrunners of the offering are MUFG, PNC Capital Markets LLC, TD Securities (USA) LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC.
Proceeds will be used for eligible green expenditures.
The electric and natural gas utility is based in Minneapolis.
| Issuer: | Northern States Power Co.
|
| Issue: | Green first mortgage bonds
|
| Amount: | $850 million
|
| Bookrunners: | MUFG, PNC Capital Markets LLC, TD Securities (USA) LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Senior co-managers: | BNP Paribas Securities Corp., CIBC World Markets Corp., Goldman Sachs & Co. LLC and Scotia Capital (USA) Inc.
|
| Co-managers: | Loop Capital Markets LLC and Siebert Williams Shank & Co. LLC
|
| Pricing date: | March 23
|
| Settlement date: | March 30
|
| Expected ratings: | Moody’s: Aa3
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| 10-year bonds
|
| Amount: | $425 million
|
| Maturity: | April 1, 2031
|
| Coupon: | 2.25%
|
| Price: | 99.582
|
| Yield: | 2.297%
|
| Spread: | Treasuries plus 65 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps until Oct. 1, 2030; par call thereafter
|
| Talk: | Treasuries plus 90 bps area
|
|
|
| 31-year bonds
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| Amount: | $425 million
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| Maturity: | April 1, 2052
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| Coupon: | 3.2%
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| Price: | 99.629
|
| Yield: | 3.219%
|
| Spread: | Treasuries plus 85 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until Oct. 1, 2051; par call thereafter
|
| Talk: | Treasuries plus 110 bps area
|
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