NV Energy subsidiary tenders for 6.75% mortgage notes in Dutch auction

By Susanna Moon

Chicago, Nov. 23 - NV Energy, Inc. said its subsidiary, Sierra Pacific Power Co., doing business as NV Energy, is offering to purchase for cash up to $75 million principal amount of its $325 million 6.75% general and refunding mortgage notes, series P, due 2037 in a modified Dutch auction.

The yield to maturity is the sum of the yield to maturity of the 4.375% U.S. Treasury note due Nov. 15, 2039 plus a spread of 155 to 180 basis points minus accrued interest to the purchase date.

The total amount includes $40 for each $1,000 principal amount of notes tendered by 5 p.m. ET on Dec. 7, the early tender date.

Under the modified Dutch auction, Sierra Pacific will accept notes in the order of highest to lowest spreads and will select the single highest spread that will allow it to purchase notes up to the offer cap.

The tender offer will end at midnight ET on Dec. 21.

Sierra Pacific plans to fund the tender offer with cash on hand and with funds borrowed under its revolving credit facility.

Global Bondholder Services Corp. (866 795-2200 or collect 212 430-3774) is the information agent. Goldman, Sachs & Co. (800 828-3182 or collect 212 357-4692) is the dealer manager.

NV Energy is a Las Vegas-based holding company. Its primary subsidiaries are utility companies Nevada Power Co. and Sierra Pacific Power, which both do business as NV Energy.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.