By Devika Patel
Knoxville, Tenn., Oct. 9 – Atlantic City Electric Co. priced $350 million of 4% 10-year first mortgage bonds (A3/A/A-) at a spread of 80 basis points over Treasuries on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 99.902 to yield 4.012%.
Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC are the joint bookrunners.
Proceeds will be used to refinance at maturity $250 million of the company’s 7.75% first mortgage bonds due Nov. 15, 2018 and short-term borrowings and for general corporate purposes.
The electric company is based in Newark, Del.
| Issuer: | Atlantic City Electric Co.
|
| Amount: | $350 million
|
| Securities: | First mortgage bonds
|
| Maturity: | Oct. 15, 2028
|
| Bookrunners: | Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC
|
| Senior co-manager: | Santander Investment Securities Inc.
|
| Co-managers: | Samuel A. Ramirez & Co. Inc. and Siebert Capital Markets
|
| Coupon: | 4%
|
| Price: | 99.902
|
| Yield: | 4.012%
|
| Spread: | Treasuries plus 80 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps until July 15, 2028; thereafter at par
|
| Trade date: | Oct. 9
|
| Settlement date: | Oct. 16
|
| Ratings: | Moody’s: A3
|
| S&P: A
|
| Fitch: A-
|
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