By Andrea Heisinger
New York, June 10 - South Carolina Electric & Gas Co. sold an upsized $400 million of 4.6% 30-year first mortgage bonds (A2/A/A) during Monday's session at a spread of Treasuries plus 128 basis points, according to an informed source and an FWP filing with the Securities and Exchange Commission.
The size was increased from $300 million. Guidance was in the 130 bps area, a source said.
Pricing was at 99.5 to yield 4.631%. There is a make-whole call at Treasuries plus 20 bps until Dec. 15, 2042, with a par call after that date.
Active bookrunners were BofA Merrill Lynch, Morgan Stanley & Co. LLC and UBS Securities LLC. Passive bookrunners were Mizuho Securities USA Inc. and TD Securities (USA) LLC.
Proceeds will be used to pay at maturity $150 million of 7.125% mortgage bonds due on June 15; to repay short-term debt primarily incurred as a result of a construction program; to finance capital expenditures and for general corporate purposes.
The Cayce, S.C.-based utility was last in the market with a $250 million reopening of 4.35% bonds due in 2042 on July 10, 2012.
| Issuer: | South Carolina Electric & Gas Co.
|
| Issue: | First mortgage bonds
|
| Amount: | $400 million, upsized from $300 million
|
| Maturity: | June 15, 2043
|
| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC (active), Mizuho Securities USA Inc., TD Securities (USA) LLC (passive)
|
| Co-managers: | BB&T Capital Markets, Mitsubishi UFJ Securities (USA) LLC, Synovus Securities
|
| Coupon: | 4.6%
|
| Price: | 99.5
|
| Yield: | 4.631%
|
| Spread: | Treasuries plus 128 bps
|
| Call: | Make-whole at Treasuries plus 20 bps until Dec. 15, 2042, par call after
|
| Trade date: | June 10
|
| Settlement date: | June 14
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
| Price talk: | 130 bps area
|
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