Northern States Power Co. - WI sold $100 million of its 3.75% first mortgage bonds due Dec. 1, 2047, with plans to use proceeds to repay short-term debt borrowings.
As of Sept. 30, the Xcel Energy Inc. subsidiary said it had approximately $92 million of outstanding short-term debt borrowings. The company may also invest a portion of the proceeds temporarily in interest-bearing obligations and add it to general corporate funds.
Interest is payable semiannually June 1 and Dec. 1, starting June 1, 2018. The bonds have a spread to benchmark Treasury of 100 basis points, according to a Nov. 27 free writing prospectus. The bonds were expected to be rated Aa3 by Moody's, A by S&P Global Ratings and A+ by Fitch Ratings.
Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC acted as joint book-running managers.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.
