By Andrea Heisinger
New York, Aug. 4 - Northern States Power Co. priced $500 million first mortgage bonds (A1/A/A+) split evenly between two tranches on Wednesday, an informed source said.
The $250 million tranche of 1.95% five-year bonds priced at 99.801 to yield 1.992% with a spread of Treasuries plus 38 basis points. The notes were priced in line with talk in the area of 38 bps.
The tranche has a make-whole call at Treasuries plus 5 bps before May 15, 2015 and is callable at par on or after that date.
A $250 million tranche of 4.85% 30-year bonds sold at 99.717 to yield 4.868% with a spread of 80 bps over Treasuries. The notes priced in line with guidance in the 80 bps area.
The 30-year bonds have a make-whole call at Treasuries plus 10 bps before Feb. 15, 2040 and are callable at par on or after that date.
Bank of New York Mellon Capital Markets LLC, Citigroup Global Markets Inc. and RBS Securities Inc. were the bookrunners.
Co-managers were Mitsubishi UFJ Securities and U.S. Bancorp Securities.
Proceeds are being added to a general fund for repayment of short-term debt and for general corporate purposes, including capital expenditures.
The electric and natural gas utility, and subsidiary of Xcel Energy Inc., is based in Minneapolis.
| Issuer: | Northern States Power Co.
|
| Issue: | First mortgage bonds
|
| Amount: | $500 million
|
| Bookrunners: | Bank of New York Mellon Capital Markets LLC, Citigroup Global Markets Inc., RBS Securities Inc.
|
| Co-managers: | Mitsubishi UFJ Securities, U.S. Bancorp Securities
|
| Trade date: | Aug. 4
|
| Settlement date: | Aug. 11
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A
|
| Fitch: A+
|
|
|
| Five-year bonds
|
| Amount: | $250 million
|
| Maturity: | Aug. 15, 2015
|
| Coupon: | 1.95%
|
| Price: | 99.801
|
| Yield: | 1.992%
|
| Spread: | Treasuries plus 38 bps
|
| Call: | Make-whole at Treasuries plus 5 bps before May 15, 2015, at par on or after that date
|
| Price talk: | 38 bps area
|
|
|
| 30-year bonds
|
| Amount: | $250 million
|
| Maturity: | Aug. 15, 2040
|
| Coupon: | 4.85%
|
| Price: | 99.717
|
| Yield: | 4.868%
|
| Spread: | Treasuries plus 80 bps
|
| Call: | Make-whole at Treasuries plus 10 bps before Feb. 15, 2040, at par on or after that date
|
| Price talk: | 80 bps area
|
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