By Aleesia Forni
Virginia Beach, Jan. 7 - Arizona Public Service Co. sold a $250 million issue of 4.7% 30-year senior notes (Baa1/A-/A-) on Tuesday with a spread of Treasuries plus 83 basis points, according to a syndicate source.
The notes priced at 99.6 to yield 4.725%.
Pricing came at the tight end of talk.
BofA Merrill Lynch, Citigroup Global Markets Inc., UBS Securities LLC and U.S. Bancorp Investments Inc. were the joint bookrunners.
Proceeds will be used to repay commercial paper and replenish cash temporarily used to fund the company's acquisition of Southern California Edison Co.'s ownership in Units 4 and 5 of the Four Corners Power Plant and to finance the payment of other costs and expenses related to the acquisition.
The company also plans to use the proceeds to replenish cash used to re-acquire two series of its tax-exempt debt.
Arizona Public Service is an electric utility based in Phoenix and a subsidiary of Pinnacle West Capital Corp.
Issuer: | Arizona Public Service Co.
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Amount: | $250 million
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Description: | Senior notes
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Maturity: | Jan. 15, 2044
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Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., UBS Securities LLC, U.S. Bancorp Investments Inc.
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Co-managers: | Blaylock Robert Van, LLC, Drexel Hamilton, Williams Capital Group, LP
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Coupon: | 4.7%
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Price: | 99.6
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Yield: | 4.725%
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Spread: | Treasuries plus 83 bps
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Trade date: | Jan. 7
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Settlement date: | Jan. 10
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Ratings: | Moody's: Baa1
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| Standard & Poor's: A-
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| Fitch: A-
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Price talk: | Treasuries plus 85 bps area
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Make-whole call: | Treasuries plus 15 bps prior to July 15, 2043, then callable at par
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Distribution: | SEC registered
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