By Aleesia Forni
Virginia Beach, June 22 – Northern States Power Co. priced a $100 million add-on to its existing 3.3% first mortgage bonds due June 15, 2024 at Treasuries plus 105 basis points on Monday, according to a market source and an FWP filed with the Securities and Exchange Commission.
The notes (Aa3/A/A+) priced at 99.171 to yield 3.408%.
Pricing was at the tight end of guidance set in the 110 bps area over Treasuries. Initial talk was in the Treasuries plus 125 bps area.
The bookrunners are BofA Merrill Lynch and J.P. Morgan Securities LLC.
Proceeds from the offering will be used to repay short-term debt and for general corporate purposes.
The original $100 million issue of bonds sold with a spread of Treasuries plus 75 bps on June 16, 2014.
The electric and natural gas utility is based in Minneapolis.
| Issuer: | Northern States Power Co.
|
| Amount: | $100 million
|
| Description: | First mortgage bonds
|
| Maturity: | June 15, 2024
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC
|
| Coupon: | 3.3%
|
| Price: | 99.171
|
| Yield: | 3.408%
|
| Spread: | Treasuries plus 105 bps
|
| Make-whole call: | Treasuries plus 15 bps prior to Dec. 15, 2023, then callable at par
|
| Trade date: | June 22
|
| Settlement date: | June 29
|
| Ratings: | Moody’s: Aa3
|
| Standard & Poor’s: A
|
| Fitch: A+
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 110 bps area, tightened from Treasuries plus 125 bps area
|
| Total issue size: | $200 million, including $100 million priced on June 16, 2014
|
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