Arizona Public Service Prices $700M Debt Offering to Fund Capital Plan
PNW sits 16% above its 52-week low of $85.323.
Summary
Arizona Public Service, Pinnacle West's main subsidiary, priced a $700 million two-part debt offering: $100 million of 5.50% notes due 2035 and $600 million of 6.25% notes due 2056. The offering follows the company's recent $10.35 billion capital plan and a $500 million at-the-market equity program announced last week. The debt raise is consistent with the utility's heavy infrastructure spending needs, though the long-dated 2056 notes carry a notably higher coupon, reflecting current rate conditions. Proceeds are expected to fund general corporate purposes, likely including the capital plan. The offering is modest relative to the company's $12 billion market cap and does not alter the credit profile materially.
At the time of this announcement, PNW was trading at $99.23 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $12B. The 52-week trading range was $85.32 to $111.16. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Reuters.