Oklahoma Gas and Electric Co. sold $300 million of its 3.85% senior notes due Aug. 15, 2047, according to company filings.
The OGE Energy Corp. subsidiary plans to add the net proceeds to its general funds and use them for general corporate purposes, including repaying short-term debt, repaying borrowings under its revolving credit facility, funding its ongoing CapEx program or using for working capital. Pending such uses, the funds will be temporarily invested.
As of June 30, the company had $160 million of revolving credit facility borrowings at a weighted average interest rate of about 1.92%.
Interest on the notes is payable semiannually on Feb. 15 and Aug. 15 of each year, starting Feb. 15, 2018. The notes have a spread to benchmark Treasury of 100 basis points. The issue was rated A1 by Moody's, A- by S&P Global Ratings and A+ by Fitch Ratings.
J.P. Morgan Securities LLC, MUFG Securities Americas Inc. and U.S. Bancorp Investments Inc. acted as joint book-running managers. BOK Financial Securities Inc., KeyBanc Capital Markets Inc. and Morgan Stanley & Co. LLC served as co-managers.
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