By Cristal Cody
Tupelo, Miss., April 2 – Evergy Kansas Central, Inc. priced $500 million of 3.45% 30-year first mortgage bonds (A2/A) on Thursday at a spread of Treasuries plus 220 basis points, according to a market source and an FWP filed with the Securities and Exchange Commission.
The bonds were initially talked to price at the Treasuries plus 250 bps area.
The issue was sold at 99.591 to yield 3.472%.
MUFG, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to redeem $250 million of the company’s 5.1% first mortgage bonds due 2020 and for general corporate purposes.
The electric utility company, formerly known as Westar Energy Inc., is based in Topeka, Kan.
| Issuer: | Evergy Kansas Central, Inc.
|
| Amount: | $500 million
|
| Description: | First mortgage bonds
|
| Maturity: | April 15, 2050
|
| Bookrunners: | MUFG, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Co-managers: | MFR Securities, Inc., Samuel A. Ramirez & Co., Inc. and Siebert Williams Shank & Co., LLC
|
| Coupon: | 3.45%
|
| Price: | 99.591
|
| Yield: | 3.472%
|
| Spread: | Treasuries plus 220 bps
|
| Call features: | Make-whole call at price equal to greater of par and Treasuries plus 35 bps before Oct. 15, 2049; thereafter at par
|
| Trade date: | April 2
|
| Settlement date: | April 9
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 250 bps area
|
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