Alliant Energy (LNT) Unit Announces Pricing Of $300M Debt
Zacks Investment Research | Sep 12, 2016 09:20PM ET
Alliant Energy Corporation’s (NYSE:LNT) unit, Interstate Power and Light Company (“IPL”) announced that it has priced the public offering of $300 million senior debentures. These debentures have an interest rate of 3.7% and will be due on Sep 15, 2046. It is a common practice among utilities to take advantage of a low interest rate environment to refinance existing debt.
The decision to refinance existing debts will extend some of its debt repayment schedules by nearly three decades.
Utilization of Net Proceeds
IPL plans to utilize net proceeds of nearly $295.3 million, before expenses, to lower outstanding capital under its receivables purchase and sale program, reduce commercial paper classified as long-term debt and/or for general corporate purposes.
The company may also need some funds to upgrade its existing coal-based facilities. Alliant Energy has plans to upgrade some of its coal facilities to meet environmental norms and aims to lower carbon emission from its generating plants by 40% in 2030 from the 2005 levels.
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