By Cristal Cody
Chicago, Aug. 11 – Arizona Public Service Co. sold an upsized $450 million of 2.2% notes due Dec. 15, 2031 at 99.983 (A2/A-/A) to yield 2.202%, according to an FWP filing with the Securities and Exchange Commission.
The notes priced with a spread over Treasuries of 87.5 basis points.
A source had earlier reported that the notes were being marketed with a $400 million issue size and a spread in the 105 bps area.
The notes feature a make-whole call and then a par call.
BNP Paribas Securities Corp., J.P. Morgan Securities LLC, MUFG and Truist Securities, Inc. are the joint bookrunners.
The company will use proceeds to repay short-term debt consisting of commercial paper or to replenish cash incurred to fund capital expenditures and for general corporate purposes.
Arizona Public Service is an electric utility wholly owned by Pinnacle West Capital Corp. The companies are based in Phoenix.
| Issuer: | Arizona Public Service Co.
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| Issue: | Notes
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| Amount: | $450 million
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| Maturity: | Dec. 15, 2031
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| Bookrunners: | BNP Paribas Securities Corp., J.P. Morgan Securities LLC, MUFG and Truist Securities, Inc.
|
| Co-managers: | BMO Capital Markets Corp., BNY Mellon Capital Markets, LLC, TD Securities (USA) LLC and Samuel A. Ramirez & Co., Inc.
|
| Coupon: | 2.2%
|
| Price: | 99.983
|
| Yield: | 2.202%
|
| Spread: | Treasuries plus 87.5 bps
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| Call features: | Make-whole call at Treasuries plus 15 bps until Sept. 15, 2031; par thereafter
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| Trade date: | Aug. 11
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| Settlement date: | Aug. 16
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| Ratings: | Moody’s: A2
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| S&P: A-
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| Fitch: A
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| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 105 bps area
|
| Cusip: | 040555DD3
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