Pinnacle West Capital Corp. sold $300 million of its 2.25% senior notes due Nov. 30, 2020.
The company plans to use proceeds from the offering for general corporate purposes, including the repayment at, or prior to, maturity of its $125 million term loan.
Until the proceeds are used for those purposes, Pinnacle West said it may also temporarily invest the proceeds in highly liquid short-term investments such as institutional money market funds, deposit the net proceeds with banks, repay short-term borrowings or temporarily utilize the proceeds in its business.
Interest is payable semiannually May 30 and Nov. 30, starting May 30, 2018. The notes have a spread to benchmark Treasury of 43 basis points, according to a Nov. 28 free writing prospectus. The issuance was expected to be rated A3 by Moody's, BBB+ by S&P Global Ratings and A- by Fitch Ratings.
Barclays Capital Inc., Mizuho Securities USA LLC, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities acted as joint book-running managers.
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