Westar Energy to redeem $260 million 9¾% notes with bond offering proceeds

By Caroline Salls

Pittsburgh, Jan. 18 - Westar Energy Inc. said it will redeem the remaining $260 million of its 9¾% senior notes due 2007 on Feb. 17 at a call premium equal to about 12% of the outstanding notes.

The company will fund the redemption using proceeds from its offering of $125 million 5.15% first-mortgage bonds maturing in 2017 and $125 million of 5.95% first-mortgage bonds maturing in 2035. Cash on hand and borrowings under the company's revolving credit facility will also be used to fund the redemption.

The notes will be redeemed at a price equal to the greater of 100% of the principal amount of the notes and the sum of the present values of the remaining scheduled payments of principal and of interest on the notes discounted to the redemption date on a semiannual basis at a rate equal to the sum of the Treasury rate plus 75 basis points plus interest accrued from Nov. 1 up to but excluding the redemption date.

Westar Energy is a Topeka, Kan., electric utility.

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