Interstate Power and Light Company (IPL), a subsidiary of Alliant Energy Corporation, has recently priced its public offering of $350 million aggregate principal amount of 4.950% senior debentures due 2034 and $300 million aggregate principal amount of 5.450% senior debentures due 2054. The company intends to use the net proceeds from this offering to retire its $500 million aggregate principal amount of 3.25% senior debentures maturing on December 1, 2024, and for general corporate purposes.
The closing of the offering is anticipated to occur on September 6, 2024. The underwriters for this offering include Barclays Capital Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and MUFG Securities Americas Inc. as joint book-running managers, and Academy Securities, Inc., Comerica Securities, Inc., KeyBanc Capital Markets Inc., and U.S. Bancorp Investments, Inc. as co-managers.
It is important to note that this offering is being made only by means of a prospectus supplement and accompanying prospectus, which are part of a shelf registration statement filed with the Securities and Exchange Commission.
The company's 2034 senior debentures carry a 4.950% interest rate, while the 2054 senior debentures carry a higher 5.450% interest rate. This indicates an increase in the interest rate compared to the 3.25% senior debentures being retired.
The company is taking advantage of the favorable market conditions to raise capital at a higher interest rate, which will allow it to retire its lower-interest debt and fund its general corporate activities.
This move reflects IPL's strategic financial management approach and its commitment to optimizing its capital structure for long-term stability and growth. Today the company's shares have moved -0.5% to a price of $58.7. For more information, read the company's full 8-K submission here.
