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Xcel Energy's Minnesota utility sells $600M of 2.9% first mortgage bonds

Northern States Power Co. - Minnesota has completed the sale of $600 million of its 2.9% first mortgage bonds due March 1, 2050.

Interest on the bonds is payable semiannually on March 1 and Sept. 1, beginning March 1, 2020. The bonds have a spread to benchmark Treasury of 105 basis points and were expected to be rated Aa3 by Moody's, A by S&P Global Ratings and A+ by Fitch Ratings, according to a Sept. 3 free writing prospectus.

The Xcel Energy Inc. subsidiary said it plans to use net proceeds to finance "Eligible Green Expenditures," from Jan. 1, 2018, to June 1, 2020, including those funded by its issuance of commercial paper.

Pending allocation of the proceeds, the company may invest them temporarily in interest bearing obligations, including in a utility money pool.

CIBC World Markets Corp., J.P. Morgan Securities Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC, BNY Mellon Capital Markets LLC and Mizuho Securities USA LLC worked as joint book-running managers. Loop Capital Markets LLC served as co-managers.