By Paul A. Harris
St. Louis, March 29 - Nevada Power Co. priced a $250 million issue of 6.65% 30-year general and refunding mortgage notes (Ba1/BB/BB+) at 99.846 to yield 6.662% in a quick-to-market transaction on Wednesday, according to market sources.
The notes priced at a 170 basis point spread to Treasuries off of the investment-grade syndicate desk, on the tight end of the Treasuries plus 170 to 175 bps price talk.
Lehman Brothers and Wachovia Securities were joint bookrunners for the issue, which was priced via Rule 144A with registration rights. The co-managers were Citigroup, Deutsche Bank Securities and UBS Investment Bank.
Proceeds will be used to repay high-coupon debt.
The issuer is a Las Vegas-based regulated public utility engaged in the distribution, transmission, generation, purchase and sale of electricity in Nevada.
| Issuer: | Nevada Power Co.
|
| Amount: | $250 million
|
| Maturity: | April 1, 2036
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| Security description: | General and refunding mortgage bonds
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| Bookrunners: | Lehman Brothers, Wachovia Securities
|
| Co-managers: | Citigroup, Deutsche Bank Securities, UBS Investment Bank
|
| Coupon: | 6.65%
|
| Price: | 99.846
|
| Yield: | 6.662%
|
| Spread: | 170 bps
|
| Trade date: | March 29
|
| Settlement date: | April 3
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB
|
| Fitch: BB+
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | Treasuries plus 170-175 bps
|
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