By Cristal Cody
Tupelo, Miss., May 12 - Westar Energy, Inc. sold $180 million in a reopening of its 4.1% first mortgage bonds due April 1, 2043 (A2/A/A-) at 99.675 to yield 4.302%, according to a FWP filing with the Securities and Exchange Commission on Monday.
The bonds priced at a spread of Treasuries plus 82 basis points.
Citigroup Global Markets Inc., BofA Merrill Lynch and U.S. Bancorp Investments, Inc. were the bookrunners.
Westar Energy originally priced $250 million of the bonds on March 21, 2013 at 99.623 to yield 4.122%, or a spread of Treasuries plus 95 bps. The total outstanding is $430 million.
Proceeds from the deal will be used to retire outstanding Kansas Gas and Electric Co. pollution control bonds, which include $108.6 million of 5.3% bonds due 2031, $50 million of 5% bonds due 2031 and $18.9 million of 5.3% bonds due 2031, and for working capital and general corporate purposes.
Westar Energy is a Topeka, Kansas-based based electric utility.
| Issuer: | Westar Energy, Inc.
|
| Amount: | $180 million Reopening
|
| Maturity: | April 1, 2043
|
| Description: | First mortgage bonds
|
| Bookrunners: | Citigroup Global Markets Inc., BofA Merrill Lynch and US Bancorp Investments, Inc.
|
| Co-manager: | Samuel A. Ramirez & Co., Inc.
|
| Coupon: | 4.1%
|
| Price: | 99.675
|
| Yield: | 4.302%
|
| Spread: | Treasuries plus 82 bps
|
| Call feature: | Prior to Oct. 1, 2042 at Treasuries plus 15 bps; on or after Oct. 1, 2042 at par
|
| Trade date: | May 12
|
| Settlement date: | May 19
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A-
|
| Total outstanding: | $430 million
|
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