By Andrea Heisinger
New York, Aug. 6 - Northern States Power Co. was in the market with an $800 million offering of first mortgage bonds (A1/A/A+) in two maturities on Monday, an informed source said.
A $300 million tranche of 2.15% 10-year notes priced at 99.848 to yield 2.167% with a spread of Treasuries plus 63 basis points. The tranche sold at the tight end of guidance in the 65 bps area, plus or minus 2 bps.
The bonds have a make-whole call at Treasuries plus 10 bps until Feb. 15, 2022 and a par call after that date.
There was also a $500 million tranche of 3.4% 30-year bonds sold at 99.236 to yield 3.441% with a spread of 83 bps over Treasuries. The bonds were sold at the low end of guidance in the 85 bps area, plus or minus 2 bps.
The paper has a make-whole call at 15 bps over Treasuries until Feb. 15, 2042 and a par call after that date.
Barclays, J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., UBS Securities LLC and Wells Fargo Securities LLC were the bookrunners.
Co-managers were BMO Capital Markets Corp. and BNY Mellon Capital Markets LLC.
Proceeds will be added to the company's general corporate fund and a portion used to repay short-term borrowings, including utility money pool borrowings, and to fund repayment or redemption of long-term debt, including the maturity of $450 million of 8% first mortgage bonds due Aug. 28, 2012.
The electric and natural gas utility subsidiary of Xcel Energy is based in Minneapolis.
| Issuer: | Northern States Power Co.
|
| Issue: | First mortgage bonds
|
| Amount: | $800 million
|
| Bookrunners: | Barclays, J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., UBS Securities LLC, Wells Fargo Securities LLC
|
| Trade date: | Aug. 6
|
| Settlement date: | Aug. 13
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A
|
| Fitch: A+
|
|
|
| 10-year bonds
|
| Amount: | $300 million
|
| Maturity: | Aug. 15, 2022
|
| Coupon: | 2.15%
|
| Price: | 99.848
|
| Yield: | 2.167%
|
| Spread: | Treasuries plus 63 bps
|
| Call: | Make-whole at Treasuries plus 10 bps until Feb. 15, 2022, after at par
|
| Price talk: | 65 bps area, plus or minus 2 bps
|
|
|
| 30-year bonds
|
| Amount: | $500 million
|
| Maturity: | Aug. 15, 2042
|
| Coupon: | 3.4%
|
| Price: | 99.236
|
| Yield: | 3.441%
|
| Spread: | Treasuries plus 83 bps
|
| Call: | Make-whole at Treasuries plus 15 bps until Feb. 15, 2042, after at par
|
| Price talk: | 85 bps area, plus or minus 2 bps
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
