By William Gullotti
Buffalo, N.Y., Aug. 21 – Southwestern Public Service Co. entered into a bond purchase agreement with some institutional investors for $100 million of 6% 30-year first mortgage bonds on Monday, according to an 8-K filing with the Securities and Exchange Commission.
The series 10 first mortgage bonds feature a make-whole call at Treasuries plus 50 basis points until March 15, 2053, followed by a par call.
RBC Capital Markets, LLC acted as placement agent for the transaction, which is expected to settle Sept. 8.
The supplemental indenture named Northwestern Mutual Life Insurance Co., Mutual of Omaha Insurance Co., United of Omaha Life Insurance Co., John Hancock Life Insurance Co. (USA), John Hancock Life Insurance Co. of New York, John Hancock Life & Health Insurance Co. and RBC Life Insurance Co. of Canada as the institutional investors.
The net proceeds from the placement are expected to be about $99.125 million, which will be used for general corporate purposes and repaying short-term debt.
Amarillo, Tex.-based Southwestern Public Service generates, purchases, distributes and sells electricity in portions of Texas and New Mexico.
| Issuer: | Southwestern Public Service Co.
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| Amount: | $100 million
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| Description: | First mortgage bonds, series 10
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| Maturity: | Sept. 15, 2053
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| Placement agent: | RBC Capital Markets, LLC
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| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | In-house counsel, Faegre Drinker Biddle & Reath LLP, Brownstein Hyatt Farber Schreck, LLP (New Mexico), Graves, Dougherty, Hearon & Moody, PC (Texas)
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| Counsel to purchasers: | Hunton Andrews Kurth LLP
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| Coupon: | 6%
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| Call feature: | Make-whole call before March 15, 2053 at Treasuries plus 50 bps; par call thereafter
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| Agreement date: | Aug. 21
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| Settlement date: | Sept. 8
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| Distribution: | Private placement
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