By Cristal Cody
Eureka Springs, Ark., May 11 – Consolidated Edison, Inc. sold $500 million of 2% five-year series 2016A debentures (A3/BBB+/BBB+) at 99.939 to yield 2.013% on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The debentures priced with a spread of 83 basis points over Treasuries.
Barclays, Mizuho Securities (USA) Inc., Wells Fargo Securities, LLC, BofA Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the bookrunners.
The offering is being made in connection with Consolidated Edison’s $975 million acquisition of a 50% interest in a gas pipeline and storage joint venture with Crestwood Energy Partners LP.
The notes will be redeemed at 101 if the acquisition does not close by March 31, 2017, or on Dec. 31, 2016 if there are conditions to the acquisition other than completion of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 that have not been satisfied.
Proceeds will be used for general corporate purposes.
Consolidated Edison is a New York-based holding company for Consolidated Edison of New York, Inc.
| Issuer: | Consolidated Edison, Inc.
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| Amount: | $500 million
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| Maturity: | May 15, 2021
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| Securities: | Debentures
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| Bookrunners: | Barclays, Mizuho Securities (USA) Inc., Wells Fargo Securities, LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC
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| Coupon: | 2%
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| Price: | 99.939
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| Yield: | 2.013%
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| Spread: | Treasuries plus 83 bps
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| Call feature: | Make-whole call before April 15, 2021 at Treasuries plus 12.5 bps; callable on or after April 15, 2021 at par
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| Pricing date: | May 11
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| Settlement date: | May 16
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| Ratings: | Moody’s: A3
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| S&P: BBB+
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| Fitch: BBB+
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| Distribution: | SEC registered
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