By William Gullotti
Buffalo, N.Y., Feb. 22 – Northern States Power Co. priced $700 million of 5.4% first mortgage bonds due 2054 (expected ratings: Aa3/A+/A+) on Thursday at 99.613, according to an FWP filing and a 424B5 filing with the Securities and Exchange Commission.
The bonds were priced at Treasuries plus 97 basis points to yield 5.426%.
The bonds feature a make-whole call at Treasuries plus 15 bps prior to Sept. 15, 2053, followed by a par call.
The joint bookrunners of the offering are MUFG Securities Americas Inc., RBC Capital Markets LLC, U.S. Bancorp Investments, Inc. and SMBC Nikko Securities America, Inc.
Proceeds will be used to fund existing and future eligible green expenditures made or to be made during the period from Jan. 1, 2023 to Dec. 31, 2024 and allocated in the development, construction and operation of the company’s solar energy projects, including the Sherco solar facility. This may include previously financed eligible green expenditures which, through Feb. 22, include expenditures previously financed with the company’s general funds, including proceeds from commercial paper.
The electric and natural gas utility is based in Minneapolis.
| Issuer: | Northern States Power Co.
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| Amount: | $700 million
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| Issue: | First mortgage bonds
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| Maturity: | March 15, 2054
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| Bookrunners: | MUFG Securities Americas Inc., RBC Capital Markets LLC, U.S. Bancorp Investments, Inc. and SMBC Nikko Securities America, Inc.
|
| Co-managers: | Drexel Hamilton, LLC, Mischler Financial Group, Inc. and Multi-Bank Securities, Inc.
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| 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: | 5.4%
|
| Price: | 99.613
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| Yield: | 5.426%
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| Spread: | Treasuries plus 97 bps
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| Call options: | Make whole at Treasuries plus 15 bps prior to Sept. 15, 2053 followed by par call
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| Pricing date: | Feb. 22
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| Settlement date: | Feb. 29
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| Expected ratings: | Moody’s: Aa3
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| S&P: A+
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| Fitch: A+
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| Distribution: | SEC registered
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| Cusip: | 665772CY3
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