By Aleesia Forni
Virginia Beach, Sept. 21 – Louisville Gas and Electric Co. priced $550 million of first mortgage bonds (A1/A) in two parts with maturities of Oct. 1, 2025 and Oct. 1, 2045, according to a market source.
There was $300 million of 3.3% 10-year notes sold at 99.957 to yield 3.305%, or Treasuries plus 110 basis points.
A $250 million 4.375% 30-year bond sold at 99.917 to yield 4.38% with a spread of Treasuries plus 135 bps.
Both parts sold tighter than talk.
BNP Paribas Securities Corp., Goldman Sachs & Co., J.P. Morgan Securities LLC and Mizuho Securities are the joint bookrunners.
Proceeds will be used to repay short-term debt, to repay $250 million of 1.625% mortgage bonds due Nov. 1, 2015 and for other general corporate purposes.
The regulated electric and natural gas utility is based in Louisville, Ky.
| Issuer: | Louisville Gas and Electric Co.
|
| Issue: | First mortgage bonds
|
| Amount: | $550 million
|
| Bookrunners: | BNP Paribas Securities Corp., Goldman Sachs & Co., J.P. Morgan Securities LLC, Mizuho Securities
|
| Trade date: | Sept. 21
|
| Ratings: | Moody’s: A1
|
| Standard & Poor’s: A
|
| Distribution: | SEC registered
|
|
|
| 10-year bonds
|
| Amount: | $300 million
|
| Maturity: | Oct. 1, 2025
|
| Coupon: | 3.3%
|
| Price: | 99.957
|
| Yield: | 3.305%
|
| Spread: | Treasuries plus 110 bps
|
| Price guidance: | Treasuries plus 130 bps area
|
|
|
| 30-year bonds
|
| Amount: | $250 million
|
| Maturity: | Oct. 1, 2045
|
| Coupon: | 4.375%
|
| Price: | 99.917
|
| Yield: | 4.38%
|
| Spread: | Treasuries plus 135 bps
|
| Price guidance: | Treasuries plus 155 bps area
|
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