Published on 11/10/2016 in the Prospect News Green Finance Daily and Prospect News Investment Grade Daily.
New Issue: Southern Power prices $1.3 billion three-part offering of senior notes
By Cristal Cody
Eureka Springs, Ark., Nov. 10 – Southern Power Co. sold $1.3 billion of senior notes (Baa1/BBB+/BBB+) in three tranches on Thursday, according to FWP filings with the Securities and Exchange Commission.
Southern Power priced $600 million of 1.95% three-year series 2016D notes at 99.975 to yield 1.958%, or 80 basis points over Treasuries.
In the five-year tranche, Southern Power sold $300 million of 2.5% series 2016E notes at 99.781 to yield 2.546%, or Treasuries plus 100 bps.
The company placed $400 million of 4.95% 30-year series 2016F notes at 98.562 to yield 5.043% and a spread of 210 bps over Treasuries.
Barclays, BNP Paribas Securities Corp., BofA Merrill Lynch, Mizuho Securities USA Inc., Scotia Capital (USA) Inc. and U.S. Bancorp Investments Inc. were the bookrunners.
Proceeds will be allocated to renewable energy generation projects and also used to redeem some of the company’s $200 million of series E 6.375% senior notes due Nov. 15, 2036 and to repay short-term debt.
Southern Power is an Atlanta-based electric company.
| Issuer: | Southern Power Co.
|
| Amount: | $1.3 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, BNP Paribas Securities Corp., BofA Merrill Lynch, Mizuho Securities USA Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc.
|
| Co-managers: | BB&T Capital Markets, CIBC World Markets Corp., Fifth Third Securities, Inc., PNC Capital Markets LLC, TD Securities (USA) LLC, Loop Capital Markets LLC, Williams Capital Group, LP, Blaylock Beal Van, LLC, CastleOak Securities, LP, Mischler Financial Group, Inc.
|
| Trade date: | Nov. 10
|
| Settlement date: | Nov. 16
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $600 million
|
| Maturity: | Dec. 15, 2019
|
| Coupon: | 1.95%
|
| Price: | 99.975
|
| Yield: | 1.958%
|
| Spread: | Treasuries plus 80 bps
|
| Call feature: | Make-whole call at Treasuries plus 12.5 bps
|
|
|
| Five-year notes
|
| Amount: | $300 million
|
| Maturity: | Dec. 15, 2021
|
| Coupon: | 2.5%
|
| Price: | 99.781
|
| Yield: | 2.546%
|
| Spread: | Treasuries plus 100 bps
|
| Call feature: | Make-whole call before Nov. 15, 2021 at Treasuries plus 15 bps; on or after Nov. 15, 2021 at par
|
|
|
| 30-year notes
|
| Amount: | $400 million
|
| Maturity: | Dec. 15, 2046
|
| Coupon: | 4.95%
|
| Price: | 98.562
|
| Yield: | 5.043%
|
| Spread: | Treasuries plus 210 bps
|
| Call feature: | Make-whole call before June 15, 2046 at Treasuries plus 35 bps; on or after June 15, 2046 at par
|
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