Published on 5/1/2023 in the Prospect News Investment Grade Daily.
New Issue: Northern States Power prices $800 million 5.1% first mortgage bonds due 2053 at 99.254
By William Gullotti
Buffalo, N.Y., May 1 – Northern States Power Co. priced $800 million of 5.1% first mortgage bonds due 2053 (expected ratings: Aa3/A/A+) on Monday at 99.254, according to an FWP filing and a 424B5 filing with the Securities and Exchange Commission.
The bonds were priced at Treasuries plus 135 basis points to yield 5.149%.
The bonds feature a make-whole call at Treasuries plus 25 bps prior to Nov. 15, 2052, followed by a par call.
The joint bookrunning managers are BMO Capital Markets Corp., CIBC World Markets Corp., Citigroup Global Markets Inc., Mizuho Securities USA LLC, U.S. Bancorp Investments, Inc. and BNY Mellon Capital Markets, LLC.
Proceeds will be used to repay short-term borrowings, to help fund the repayment or redemption of outstanding long-term debt including $400 million total principal of its 2.6% first mortgage bonds due May 15, 2023 and for other general corporate purposes.
The electric and natural gas utility is based in Minneapolis.
| Issuer: | Northern States Power Co.
|
| Amount: | $800 million
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| Issue: | First mortgage bonds
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| Maturity: | May 15, 2053
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| Bookrunners: | BMO Capital Markets Corp., CIBC World Markets Corp., Citigroup Global Markets Inc., Mizuho Securities USA LLC, U.S. Bancorp Investments, Inc. and BNY Mellon Capital Markets, LLC
|
| Co-managers: | Bancroft Capital, LLC, Cabrera Capital Markets, LLC, C.L. King & Associates, Inc. and RBC Capital Markets, LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Jones Day and in-house counsel
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| Counsel to underwriters: | Hunton Andrews Kurth LLP
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| Coupon: | 5.1%
|
| Price: | 99.254
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| Yield: | 5.149%
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| Spread: | Treasuries plus 135 bps
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| Call options: | Make whole at Treasuries plus 25 bps prior to Nov. 15, 2052 followed by par call
|
| Pricing date: | May 1
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| Settlement date: | May 8
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| Expected ratings: | Moody’s: Aa3
|
| S&P: A
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| Fitch: A+
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| Distribution: | SEC registered
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| Cusip: | 665772CX5
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