NV Energy unit gets $73.26 million 6.75% notes in Dutch auction offer

By Susanna Moon

Chicago, Dec. 22 - NV Energy, Inc. subsidiary Sierra Pacific Power Co. said investors tendered $73,258,000 principal amount of its $325 million of 6.75% general and refunding mortgage notes, series P, due 2037.

The company offered to purchase up to $75 million principal amount of the notes in a modified Dutch auction.

Sierra Pacific priced the notes with a tender offer yield of 5.988% based on a clearing spread of 155 basis points, a purchase date of Dec. 23 and a reference yield of 4.438%.

The tender offer expired at midnight ET on Dec. 21. The offer began Nov. 23.

Holders will receive $1,102.15 per $1,000 principal amount of notes tendered by 5 p.m. ET on Dec. 7, which includes an early tender fee of $40.00 per note.

Sierra Pacific also will pay accrued interest to the purchase date.

The yield to maturity is the sum of the yield to maturity of the 4.375% U.S. Treasury note due Nov. 15, 2039 plus a spread of 155 bps minus accrued interest to the purchase date.

Sierra Pacific previously said it planned to fund the tender offer with cash on hand and with funds borrowed under its revolving credit facility.

Goldman Sachs & Co. (800 828-3182 or collect 212 357-4692) is the dealer manager, and Global Bondholder Services Corp. (866 795-2200 or collect 212 430-3774) is the information agent.

NV Energy is a Las Vegas-based holding company. Its primary subsidiaries are utility companies Nevada Power Co. and Sierra Pacific Power, which both do business as NV Energy.

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