By Andrea Heisinger
New York, Aug. 13 - Cleveland Electric & Illuminating Co. sold $300 million 5.5% 15-year first mortgage bonds Thursday to yield Treasuries plus 195 basis points, a source away from the deal said.
The bonds (Baa1/BBB+/) priced at 99.466 to yield 5.553%. They have a make-whole call at Treasuries plus 30 bps.
Bookrunners were Goldman Sachs & Co., KeyBanc Capital Markets Inc. and UBS Investment Bank.
Proceeds will be used to replace $150 million of outstanding 7.75% bonds, to repay a portion of short-term borrowings and for general corporate purposes.
The electric subsidiary of FirstEnergy Corp. is based in Akron, Ohio.
| Issuer: | Cleveland Electric & Illuminating Co.
|
| Issue: | First mortgage bonds
|
| Amount: | $300 million
|
| Maturity: | Aug. 15, 2024
|
| Bookrunners: | Goldman Sachs & Co., KeyBanc Capital Markets Inc., UBS Investment Bank
|
| Coupon: | 5.5%
|
| Price: | 99.466
|
| Yield: | 5.553%
|
| Spread: | Treasuries plus 195 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Trade date: | Aug. 13
|
| Settlement date: | Aug. 18
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
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