By Cristal Cody
Tupelo, Miss., May 15 – Avista Corp. priced $375 million of 4.35% 30-year first mortgage bonds on Tuesday at 99.899 to yield 4.356%, or a spread of 115 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
The bonds (A2/A-) were initially talked to price with a spread in the Treasuries plus 125 bps area.
BNY Mellon Capital Markets, LLC, J.P. Morgan Securities LLC, MUFG and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to repay $39.5 million of borrowings under the company's $400 million credit facility, to pay at maturity $250 million of 5.95% first mortgage bonds on June 1, 2018, to pay at maturity $15.5 million of 7.45% series A secured medium-term notes on June 11, 2018 and for the company’s construction, facility improvement and maintenance programs and other general corporate purposes.
Avista is a Spokane, Wash.-based energy company.
Issuer: | Avista Corp.
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Amount: | $375 million
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Maturity: | June 1, 2048
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Description: | First mortgage bonds
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Bookrunners: | BNY Mellon Capital Markets, LLC, J.P. Morgan Securities LLC, MUFG and Wells Fargo Securities LLC
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Co-managers: | KeyBanc Capital Markets Inc., SMBC Nikko Securities America Inc. and U.S. Bancorp Investments Inc.
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Coupon: | 4.35%
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Price: | 99.899
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Yield: | 4.356%
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Spread: | Treasuries plus 115 bps
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Call features: | Make-whole call before Dec. 1, 2047 at Treasuries plus 20 bps; thereafter at par
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Trade date: | May 15
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Settlement date: | May 22
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Ratings: | Moody’s: A2
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| S&P: A-
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Distribution: | SEC registered
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Price guidance: | Treasuries plus 125 bps area
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