Published on 1/10/2012 in the Prospect News Investment Grade Daily.
New Issue: Arizona Public Service prices $325 million 4.5% notes due 2042 at Treasuries plus 155 bps
New York, Jan. 10 - Arizona Public Service Co. priced $325 million of 30-year notes with a spread of Treasuries plus 155 basis points on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The 4.5% securities (Baa2/BBB/BBB) which are due April 1, 2042 priced at 99.054 to yield 4.557%.
Barclays Capital Inc., BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC and Credit Suisse Securities (USA) LLC were joint bookrunners for the off-the-shelf sale. Co-managers were KeyBanc Capital Markets Inc., SunTrust Robinson Humphrey, Inc. and U.S. Bancorp Investments, Inc.
Proceeds will be used to repay a maturity part of the company's $375 million of 6.5% senior notes due March 1, 2012. The remainder of the maturity notes will be repaid with cash on hand, issuance of commercial paper or revolving credit facility borrowings.
Arizona Public Service is an electric utility headquartered in Phoenix and a subsidiary of Pinnacle West Capital Corp.
| Issuer: | Arizona Public Service Co.
|
| Issue: | Notes
|
| Amount: | $325 million
|
| Maturity: | April 1, 2042
|
| Coupon: | 4.50%
|
| Price: | 99.054
|
| Yield: | 4.557%
|
| Spread: | 155 basis points
|
| Call: | Make-whole call at Treasuries plus 25 bps until Oct. 1, 2041, then at par
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
| Bookrunners: | Barclays Capital Inc., BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, Credit Suisse Securities (USA) LLC
|
| Co-managers: | KeyBanc Capital Markets Inc., SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc.
|
| Pricing date: | Jan. 10
|
| Settlement date: | Jan. 13
|
| Distribution: | Off shelf
|
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