By Lisa Kerner
Charlotte, N.C., Dec. 7 - California Pacific Electric Co. completed the private placement of $70 million of senior fixed-rate notes with U.S. institutional investors in two tranches: $45 million of 10-year 5.19% notes and $25 million of 15-year 5.59% notes.
The company, a 50-50 joint venture between Algonquin Power & Utilities Corp. and Emera Inc., will use the proceeds to fund the acquisition of NV Energy, Inc.'s California-based electricity distribution and related generation assets. The sale is expected to close by year-end, according to an Algonquin news release.
UBS Securities LLC acted as the lead bookrunner on the transaction.
"The private placement debt financing completes the financing plan for the CalPECo acquisition and demonstrates the receptiveness of the debt capital markets for our strategy of acquiring quality regulated utilities," Algonquin chief executive officer Ian Robertson said in the release.
Oakville, Ont.-based Algonquin is an electric power and distribution company.
| Issuer: | California Pacific Electric Co.
|
| Issue: | Senior fixed-rate notes
|
| Amount: | $70 million
|
| Distribution: | Private placement
|
|
|
| First tranche
|
| Amount: | $45 million
|
| Maturity: | 10 years
|
| Coupon: | 5.19%
|
|
|
| Second tranche
|
| Amount: | $25 million
|
| Maturity: | 15 years
|
| Coupon: | 5.59%
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
