Southwestern Public Service Company’s $250 Million Notes Offering

Hunton Andrews Kurth advised the underwriters on the deal.

Southwestern Public Service Co. issued $250 million of its 3.15% series No. 8 first mortgage bonds due 2050.

The Xcel Energy Inc. subsidiary sold $350 million of bonds from the same series in May 2020, for a total principal amount outstanding of $600 million.

The interest on the bonds is payable May 1 and Nov. 1 each year, commencing on May 1, 2021. The securities carry a spread to benchmark Treasury of 95 basis points and expected ratings of A3 (Stable) by Moody’s, A (Stable) by S&P Global Ratings and A- (Stable) by Fitch Ratings.

The utility plans to use the proceeds to finance or refinance, in whole or in part, existing and future eligible green expenditures, according to an SEC filing.

Until such purpose, Southwestern Public Service may use the proceeds temporarily to pay down outstanding commercial paper and/or invest them temporarily in interest-bearing obligations, including investments in the utility money pool.

Barclays Capital Inc. and BMO Capital Markets Corp. acted as joint bookrunning managers. Mizuho Securities USA LLC acted as co-manager.

SPS, a wholly owned subsidiary of Xcel Energy Inc., is a utility engaged primarily in the generation, purchase, transmission, distribution and sale of electricity in portions of Texas and New Mexico. SPS provides electric utility service to approximately 0.4 million customers in Texas and New Mexico.

The Hunton Andrews Kurth team included Pete O’Brien (Picture), Christina Kwon, Brendan P. Harney and Flavia Vehbiu. Robert McNamara and Tim Strother provided tax advice.

Involved fees earner: Brendan Harney – Hunton Andrew Kurth; Christina Kwon – Hunton Andrew Kurth; Robert McNamara – Hunton Andrew Kurth; Peter O’Brien – Hunton Andrew Kurth; Tim Strother – Hunton Andrew Kurth; Flavia Vehbiu – Hunton Andrew Kurth;

Law Firms: Hunton Andrew Kurth;

Clients: Barclays Capital ; BMO Capital Markets; Mizuho Securities;

Martina Bellini

Author: Martina Bellini