Published on 5/15/2015 in the Prospect News Investment Grade Daily.
New Issue: Tampa Electric sells $250 million 4.2% notes due 2045 at 127 bps over Treasuries
By Aleesia Forni
Virginia Beach, May 15 – Tampa Electric Co. priced a $250 million offering of 4.2% 30-year senior notes at Treasuries plus 127 basis points on Friday, according to a market source.
The notes (A2/BBB+/A-) priced at 99.814 to yield 4.211%.
Pricing was at the tight end of guidance set in the Treasuries plus 130 bps area after having tightened from initial talk in the 140 bps area over Treasuries.
BNY Mellon Capital Markets, LLC, MUFG, RBC Capital Markets LLC and SunTrust Robinson Humphrey, Inc. were the bookrunners.
Proceeds will be used to repay short-term debt and for general corporate purposes.
The Tampa, Fla.-based electric and gas utility is a subsidiary of TECO Energy, Inc.
| Issuer: | Tampa Electric Co.
|
| Amount: | $250 million
|
| Description: | Senior notes
|
| Maturity: | May 15, 2045
|
| Bookrunners: | BNY Mellon Capital Markets, LLC, MUFG, RBC Capital Markets LLC, SunTrust Robinson Humphrey, Inc.
|
| Co-managers: | Fifth Third Securities Inc., Scotia Capital (USA) Inc., Williams Capital Group, LP
|
| Coupon: | 4.2%
|
| Price: | 99.814
|
| Yield: | 4.211%
|
| Spread: | Treasuries plus 127 bps
|
| Make-whole call: | 20 bps prior to Nov. 15, 2044, then callable at par
|
| Trade date: | May 15
|
| Settlement date: | May 20
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: BBB+
|
| Fitch: A-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 130 bps area, tightened from 140 bps area
|
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