Published on 8/4/2015 in the Prospect News Investment Grade Daily.
New Issue: Northern States Power sells $600 million mortgage bonds due 2020, 2045
By Aleesia Forni
Virginia Beach, Aug. 4 – Northern States Power Co. was in Tuesday’s market with a $600 million offering of first mortgage bonds (Aa3/A/A+) in tranches due Aug. 15, 2020 and Aug. 15, 2045, according to a market source and an FWP filed with the Securities and Exchange Commission.
The company sold a $300 million tranche of 2.2% five-year bonds with a spread of Treasuries plus 65 basis points. Pricing was at 99.816 to yield 2.239%.
Also, $300 million of 4% 30-year bonds sold at 98.367 to yield 4.095%, or Treasuries plus 120 bps.
The bookrunners are BNP Paribas Securities Corp., BNY Mellon Capital Markets LLC, MUFG, Mizuho Securities and Morgan Stanley & Co. LLC.
Proceeds will be added to the company’s general funds and be used to repay debt and for general corporate purposes.
The electric and natural gas utility is based in Minneapolis.
| Issuer: | Northern States Power Co.
|
| Issue: | First mortgage bonds
|
| Amount: | $600 million
|
| Bookrunners: | BNP Paribas Securities Corp., BNY Mellon Capital Markets LLC, MUFG, Mizuho Securities, Morgan Stanley & Co. LLC
|
| Co-managers: | Loop Capital Markets LLC, PNC Capital Markets LLC
|
| Trade date: | Aug. 4
|
| Settlement date: | Aug. 11
|
| Ratings: | Moody’s: Aa3
|
| Standard & Poor’s: A
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| Five-year bonds
|
| Amount: | $300 million
|
| Maturity: | Aug. 15, 2020
|
| Coupon: | 2.2%
|
| Price: | 99.816
|
| Yield: | 2.239%
|
| Spread: | Treasuries plus 65 bps
|
| Price talk: | Treasuries plus 80 bps to 85 bps
|
| Make-whole call: | Treasuries plus 10 bps prior to July 15, 2020, then callable at par
|
|
|
| 30-year bonds
|
| Amount: | $300 million
|
| Maturity: | Aug. 15, 2045
|
| Coupon: | 4%
|
| Price: | 98.367
|
| Yield: | 4.095%
|
| Spread: | Treasuries plus 120 bps
|
| Price talk: | Treasuries plus 135 bps area
|
| Make-whole call: | Treasuries plus 20 bps prior to Feb. 15, 2045, then callable at par
|
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