FWP 1 d410347dfwp.htm FREE WRITING PROSPECTUS Free Writing Prospectus

Filed Pursuant to Rule 433

Registration No. 333-181305-01

September 11, 2012

TUCSON ELECTRIC POWER COMPANY

$150,000,000

3.85% Notes due 2023

PRICING TERM SHEET

 

Issuer:

   Tucson Electric Power Company

Security:

   3.85% Notes due 2023

Ratings:*

   Baa3/BBB-/BBB-

Principal Amount:

   $150,000,000

Trade Date:

   September 11, 2012

Settlement Date:

   September 14, 2012 (T+3)

Maturity Date:

   March 15, 2023

Interest Payment Dates:

   March 15 and September 15 of each year, commencing March 15, 2013

Coupon:

   3.85%

Public Offering Price:

   99.675% per Note

Yield to Maturity:

   3.888%

Benchmark Treasury:

   1.625% due August 15, 2022

Benchmark Treasury Yield:

   1.688%

Spread to Benchmark Treasury:

   220 bps

Optional Redemption:

   Make-whole call at any time prior to December 15, 2022 at 35 bps spread over Benchmark Treasury.
   Callable on or after December 15, 2022 at par.

CUSIP/ISIN:

   898813AL4 / US898813AL41

Joint Book-Running Managers:

  

J.P. Morgan Securities LLC

Mitsubishi UFJ Securities (USA), Inc.

Co-Managers:

  

Scotia Capital (USA) Inc.

U.S. Bancorp Investments, Inc.

Comerica Securities, Inc.

 

Ratio of Earnings to Fixed Charges:   2007        2008      2009      2010      2011      12 months
ended June 30,
2012
 
    1.775           1.175         2.582         2.763         2.421         2.279   

* A security rating is not a recommendation to buy, sell or hold securities and should be evaluated independently of any other rating. Each rating is subject to revision or withdrawal at any time by the assigning rating organization. Each security rating agency has its own methodology for assigning ratings, and, accordingly, each rating should be considered independently of all other ratings.

The issuer has filed a registration statement (including a prospectus and a preliminary prospectus supplement) with the Securities and Exchange Commission, or SEC, for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement, the preliminary prospectus supplement and other documents the issuer has filed with the SEC for more


complete information about the issuer and this offering. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling J.P. Morgan Securities LLC collect at (212) 834-4533 or Mitsubishi UFJ Securities (USA), Inc. toll-free at 1-877-649-6848.