By Aleesia Forni
Virginia Beach, May 14 – Southern Power Co. was in the market on Thursday with a $650 million offering of senior notes in two parts, according to an informed source and two separate FWP filings with the Securities and Exchange Commission.
A $350 million tranche of 1.5% series 2015A notes due 2018 priced at 99.796 to yield 1.569%, or Treasuries plus 65 basis points.
The company also sold $300 million 2.375% series 2015B notes due 2020 priced with a spread of 85 bps over Treasuries. Pricing was at 99.981 to yield 2.379%.
Both tranches priced at the tight end of price guidance.
BofA Merrill Lynch, Mizuho Securities USA Inc., SunTrust Robinson Humphrey Inc. and UBS Securities LLC were the bookrunners.
Proceeds will be used to repay the company’s $525 million of series 2003A senior notes. Any remaining net proceeds will be used to repay short-term debt and for general corporate purposes.
Based in Atlanta, Southern Power is a holding company for electric utilities throughout the South.
| Issuer: | Southern Power Co.
|
| Issue: | Senior notes
|
| Amount: | $650 million
|
| Bookrunners: | BofA Merrill Lynch, Mizuho Securities USA Inc., SunTrust Robinson Humphrey Inc., UBS Securities LLC
|
| Co-managers: | Banca IMI SpA, BBVA Securities Inc., PNC Capital Markets LLC, Williams Capital Group LP
|
| Trade date: | May 14
|
| Settlement date: | May 20
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $350 million
|
| Maturity: | June 1, 2018
|
| Coupon: | 1.5%
|
| Price: | 99.796
|
| Yield: | 1.569%
|
| Spread: | Treasuries plus 65 bps
|
| Price guidance: | Treasuries plus 70 bps area
|
|
|
| Five-year notes
|
| Amount: | $300 million
|
| Maturity: | June 1, 2020
|
| Coupon: | 2.375%
|
| Price: | 99.981
|
| Yield: | 2.379%
|
| Spread: | Treasuries plus 85 bps
|
| Price guidance: | Treasuries plus 90 bps area
|
| Make-whole call: | 15 bps prior to May 1, 2020, then callable at par
|
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