Tucson Electric Power Co. issued $350 million of 4.00% senior notes due June 15, 2050, according to an April 6 prospectus.
Interest on the notes is payable June 15 and Dec. 15 each year, starting June 15, 2020.
The notes have a spread to benchmark Treasury of 275 basis points and were rated A3 by Moody's and A- by S&P Global Ratings.
The Fortis Inc. subsidiary plans to use proceeds to repay $225 million of term loans outstanding under its 2019 credit agreement and revolving loans outstanding under its 2015 credit agreement. Any remaining balance will be applied to general corporate purposes.
BBVA Securities Inc., BNY Mellon Capital Markets LLC, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC served as joint book-running managers. MUFG Securities Americas Inc., Scotia Capital (USA) Inc. and U.S. Bancorp Investments Inc. acted as co-managers.