Published on 6/8/2016 in the Prospect News Investment Grade Daily.
New Issue: South Carolina Electric & Gas sells $500 million first mortgage bonds in two parts
By Cristal Cody
Eureka Springs, Ark., June 8 – South Carolina Electric & Gas Co. sold $500 million of first mortgage bonds in two tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $425 million of 4.1% 30-year bonds at 99.794 to yield 4.112%, or 160 basis points over Treasuries.
South Carolina Electric & Gas also sold a $75 million reopening of its 4.5% bonds due June 1, 2064 at 97.843 to yield 4.612%, or 210 bps over Treasuries.
The company originally priced $300 million of the bonds on May 20, 2014 at 98.938 to yield 4.554%, or Treasuries plus 120 bps. The total outstanding is $375 million.
The bookrunners were BB&T Capital Markets, J.P. Morgan Securities Inc., MUFG, TD Securities (USA) LLC, UBS Securities LLC and Wells Fargo Securities LLC.
Proceeds will be used to repay short-term debt, to finance capital expenditures and for general corporate purposes.
South Carolina Electric & Gas is a regulated utility based in Cayce, S.C.
| Issuer: | South Carolina Electric & Gas Co.
|
| Amount: | $500 million
|
| Securities: | First mortgage bonds
|
| Bookrunners: | BB&T Capital Markets, J.P. Morgan Securities Inc., MUFG, TD Securities (USA) LLC, UBS Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | U.S. Bancorp Investments Inc., Drexel Hamilton, FTN Financial Securities Corp.
|
| Pricing date: | June 8
|
| Settlement date: | June 13
|
| Ratings: | Moody’s: A3
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| 30-year bonds
|
| Amount: | $425 million
|
| Maturity: | June 15, 2046
|
| Coupon: | 4.1%
|
| Price: | 99.794
|
| Yield: | 4.112%
|
| Spread: | Treasuries plus 160 bps
|
| Call feature: | Make-whole call before Dec. 15, 2045 at Treasuries plus 25 bps; on or after Dec. 15, 2045 at par
|
|
|
| Add-on notes
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| Amount: | $75 million reopening
|
| Maturity: | June 1, 2064
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| Coupon: | 4.5%
|
| Price: | 97.843, plus accrued interest from June 1
|
| Yield: | 4.612%
|
| Spread: | Treasuries plus 210 bps
|
| Call feature: | Make-whole call before Dec. 1, 2063 at Treasuries plus 20 bps; on or after Dec. 1, 2063 at par
|
| Total outstanding: | $375 million, including $300 million priced on May 20, 2014 at 120 bps over Treasuries
|
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