Published on 1/8/2019 in the Prospect News Green Finance Daily and Prospect News Investment Grade Daily.
New Issue: MidAmerican Energy gives details on $1.5 billion two-part green first mortgage bonds
By Devika Patel
Knoxville, Tenn., Jan. 8 – MidAmerican Energy Co. offered further details about a $1.5 billion sale of green first mortgage bonds (Aa2/A+) that priced in two tranches on Monday, according to an FWP filed with the Securities and Exchange Commission.
The company placed $600 million of 3.65% long 10-year bonds at a spread of 97 basis points over Treasuries, on the tight side of guidance in the Treasuries plus 100 bps area, plus or minus 3 bps. These notes priced at 99.911 to yield 3.661%. Initial talk on the notes was in the Treasuries plus 115 bps area.
MidAmerican Energy sold $900 million of 4.25% long 30-year bonds on top of guidance at a Treasuries plus 130 bps spread. These notes priced at 99.39 to yield 4.286%. The notes were initially talked to print in the Treasuries plus 145 bps spread area.
Barclays, BNY Mellon Capital Markets LLC, Mizuho Securities USA LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, BNP Paribas Securities Corp. and SMBC Nikko Securities America Inc. were the bookrunners.
Proceeds will be used to finance eligible green projects.
MidAmerican Energy is a utility company based in Des Moines.
| Issuer: | MidAmerican Energy Co.
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| Amount: | $1.5 billion
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| Description: | First mortgage bonds
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| Bookrunners: | Barclays, BNY Mellon Capital Markets LLC, Mizuho Securities USA LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, BNP Paribas Securities Corp. and SMBC Nikko Securities America Inc.
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| Co-managers: | BMO Capital Markets Corp., Citigroup Global Markets Inc., KeyBanc Capital Markets Inc., nabSecurities, LLC, RBC Capital Markets Corp., Santander Investment Securities Inc. and SunTrust Robinson Humphrey Inc.
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| Trade date: | Jan. 7
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| Settlement date: | Jan. 9
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| Ratings: | Moody’s: Aa2
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| S&P: A+
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| Distribution: | SEC registered
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| 10-year bonds
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| Amount: | $600 million
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| Maturity: | April 15, 2029
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| Coupon: | 3.65%
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| Price: | 99.911
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| Yield: | 3.661%
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| Spread: | Treasuries plus 97 bps
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| Call: | Make-whole call at Treasuries plus 15 bps until Jan. 15, 2029, then a par call
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| Price guidance: | Treasuries plus 100 bps area, plus or minus 3 bps; initial talk at Treasuries plus 115 bps area
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| 30-year bonds
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| Amount: | $900 million
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| Maturity: | July 15, 2049
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| Coupon: | 4.25%
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| Price: | 99.39
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| Yield: | 4.286%
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| Spread: | Treasuries plus 130 bps
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| Call: | Make-whole call at Treasuries plus 20 bps until Jan. 15, 2049, then a par call
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| Price guidance: | Treasuries plus 130 bps area; initial talk at Treasuries plus 145 bps area
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