FWP 1 d232243dfwp.htm FREE WRITING PROSPECTUS Free Writing Prospectus

Free Writing Prospectus
Filed Pursuant to Rule 433
Registration Statement No. 333-203664-03

Southwestern Public Service Company

(a New Mexico corporation)

$300,000,000 3.40% FIRST MORTGAGE BONDS, SERIES NO. 4 DUE 2046

 

Issuer:

    Southwestern Public Service Company (a New Mexico corporation)

Issue Format:

    SEC Registered

Expected Ratings*:

    A2 (Stable)/A (Stable)/A- (Stable) (Moody’s/Standard & Poor’s/Fitch)

Security Type:

    First Mortgage Bonds

Principal Amount:

    $300,000,000

Pricing Date:

    August 5, 2016

Settlement Date:

    August 12, 2016 (T+5)

Maturity Date:

    August 15, 2046

Interest Payment Dates:

    Semi-annually on February 15 and August 15, commencing on February 15, 2017

Reference Benchmark Treasury:

    2.500% due February 15, 2046

Benchmark Treasury Price / Yield:

    104-02 / 2.309%

Re-offer Spread:

    +110 bps

Re-offer Yield:

    3.409%

Coupon:

    3.40%

Price to Public:

    99.831%

Net Proceeds to Issuer:

    $296,868,000 (before transaction expenses)

Optional Redemption Provisions:

   

Make-Whole Call:

    Prior to February 15, 2046, treasury yield +20 bps

Par Call:

    On or after February 15, 2046

CUSIP/ISIN:

    845743 BQ5/ US845743BQ58

Minimum Denominations:

    $1,000

Joint Book-Running Managers:

   

KeyBanc Capital Markets Inc.

Mizuho Securities USA Inc.

U.S. Bancorp Investments, Inc.

CIBC World Markets Corp.

*Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.

The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get 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 KeyBanc Capital Markets Inc., toll free at 1-866-227-6479, Mizuho Securities USA Inc., toll free at 1-866-271-7403, U.S. Bancorp Investments, Inc., toll-free at 1-877-558-2607 or CIBC World Markets Corp., toll free at 1-800-282-0822.