By Andrea Heisinger
New York, April 14 - Semco Energy Inc. priced $300 million of 5.15% 10-year senior unsecured notes on Wednesday to yield Treasuries plus 130 basis points, a source close to the sale said.
The spread came tight to talk that was in the 137.5 bps area, the source said.
The notes (A3/BBB+) priced at 99.93 to yield 5.159%. There is a make-whole call of Treasuries plus 20 bps.
The notes were sold under Rule 144A and Regulation S.
Credit Suisse Securities, RBC Capital Markets Corp. and UBS Investment Bank were the bookrunners.
The natural gas utility is based in Port Huron, Mich.
| Issuer: | Semco Energy Inc.
|
| Issue: | Senior unsecured notes
|
| Amount: | $300 million
|
| Maturity: | April 21, 2020
|
| Bookrunners: | Credit Suisse Securities, RBC Capital Markets Corp., UBS Investment Bank
|
| Coupon: | 5.15%
|
| Price: | 99.93
|
| Yield: | 5.159%
|
| Spread: | Treasuries plus 130 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Distribution: | Rule 144A/Regulation S
|
| Trade date: | April 14
|
| Settlement date: | April 21
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB+
|
| Price talk: | 137.5 bps area
|
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