Published on 9/12/2013 in the Prospect News Investment Grade Daily.
New Issue: MidAmerican Energy sells $950 million mortgage bonds in three parts
By Aleesia Forni
Virginia Beach, Va., Sept. 12 - MidAmerican Energy Co. hit Thursday's primary with $950 million of first mortgage bonds in three tranches, according to a filing with the Securities and Exchange Commission.
The company sold $350 million of 2.4% 5.5-year first mortgage bonds with a spread of 70 basis points over Treasuries.
Pricing was at 99.944 to yield 2.411%.
There was also $250 million of 3.7% first mortgage bonds priced at Treasuries plus 83 bps, or 99.67 to yield 3.74%.
Finally, a $350 million tranche of 4.8% first mortgage bonds due 2043 sold with a spread of Treasuries plus 95 bps.
MidAmerican sold the notes at 99.528 to yield 4.83%.
Barclays, J.P. Morgan Securities LLC, RBS Securities Inc., BNP Paribas Securities Corp., Mitsubishi UFJ Securities (USA) Inc. and U.S. Bancorp Investments Inc. were the joint bookrunners.
Proceeds will be used to repay maturing long-term debt, with the remainder for general corporate purposes.
The utility is based in Des Moines, Iowa.
| Issuer: | MidAmerican Energy Co.
|
| Issue: | First mortgage bonds
|
| Amount: | $950 million
|
| Bookrunners: | Barclays, J.P. Morgan Securities LLC, RBS Securities Inc., BNP Paribas Securities Corp., Mitsubishi UFJ Securities (USA) Inc. and U.S. Bancorp Investments Inc.
|
| Co-managers: | Citigroup Global Markets Inc., Wells Fargo Securities LLC, Deutsche Bank Securities Inc., KeyBanc Capital Markets Inc., Lloyds Securities Inc., Mizuho Securities USA Inc., RBC Capital Markets LLC, SMBC Nikko Securities America, Inc.
|
| Trade date: | Sept. 12
|
| Settlement date: | Sept. 19
|
| Ratings: | Moody's: Aa3
|
| Standard & Poor's: A
|
| Fitch: A+
|
| Distribution: | SEC-registered
|
|
|
| 5.5-year first mortgage bonds
|
| Amount: | $350 million
|
| Maturity: | March 15, 2019
|
| Coupon: | 2.4%
|
| Price: | 99.944
|
| Yield: | 2.411%
|
| Spread: | Treasuries plus 70 bps
|
| Make-whole call: | Treasuries plus 12.5 bps prior to February | 15, 2019, then callable at par
|
|
|
| Ten-year first mortgage bonds
|
| Amount: | $250 million
|
| Maturity: | Sept. 15, 2023
|
| Coupon: | 3.7%
|
| Price: | 99.67
|
| Yield: | 3.74%
|
| Spread: | Treasuries plus 83 bps
|
| Make-whole call: | Treasuries plus 15 bps prior to June 15, 2023, then callable at par
|
|
|
| Thirty-year first mortgage bonds
|
| Amount: | $350 million
|
| Maturity: | Sept. 15, 2043
|
| Coupon: | 4.8%
|
| Price: | 99.528
|
| Yield: | 4.83%
|
| Spread: | Treasuries plus 95 bps
|
| Make-whole call: | Treasuries plus 15 bps prior to March 15, 2043, then callable at par
|
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