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Nevada Power, Sierra Pacific holders tender 92% of 9% mortgage notes, 69% of 8% mortgage notes
By Angela McDaniels
Seattle, June 22 - Nevada Power Co. received tenders for $210.256 million, or 92%, of its $227.5 million 9% series G general and refunding mortgage notes due 2013 during a tender offer that expired on Friday, according to a company news release.
In addition, Sierra Pacific Co. received tenders for $220.757 million, or 69%, of its $320 million 8% series A general and refunding mortgage bonds due 2008.
Nevada Power will pay $1,079.75 per $1,000 principal amount of 9% notes.
That price is equal to the present value of $1,045.00 - which is the redemption price payable for the notes on Aug. 15, 2008, the first call date - discounted using the yield to maturity of the 4 1/8% Treasury due Aug. 15, 2008 and 50 basis points.
Nevada Power said it will use previously established private credit facilities or proceeds from the sale of new securities to fund the tender consideration.
Sierra Pacific will pay $1,022.10 per $1,000 principal amount of 8% notes.
That price is equal to the present value of $1,000 - the principal amount due on the maturity date of June 1, 2008 - discounted using the yield to maturity of the 4 7/8% Treasury due May 31, 2008 and 50 bps, minus accrued interest up to the settlement date.
The companies will also pay accrued interest to the settlement date, which is slated for June 28.
Pricing was determined at 2 p.m. ET on June 21.
The tender offers began on June 15.
Credit Suisse (800 820-1653 or call collect 212 325-4008) and Goldman, Sachs & Co. (800 828-3182 or call collect 212 902-9077) were the dealer managers. Morrow & Co., Inc. (800 607-0088 or call collect 203 658-9400) was the information agent.
Nevada Power and Sierra Pacific Power, both public utility companies, are wholly owned subsidiaries of Reno, Nev.-based Sierra Pacific Resources.
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