Alliant Energy Corporation
) wholly owned subsidiary Interstate Power and Light Company
("IPL") announced the pricing of its public offering of $250
million 4.7% senior debentures due on Oct 15, 2043.
BROOKFIELD INFR (BIP): Free Stock Analysis
CLECO CORP (CNL): Free Stock Analysis Report
ENTERGY CORP (ETR): Free Stock Analysis
ALLIANT ENGY CP (LNT): Free Stock Analysis
To read this article on Zacks.com click here.
IPL plans to invest $246.3 million of the net proceeds to reduce
outstanding capital under its receivables purchase and sale
program, lower long-term debt and for general corporate purposes.
Interest expenses of the company at the end of the second quarter
were $42.5 million. The new debt issuance will increase interest
expenses by $11.6 million per annum.
The current long-term debt-to-capital ratio of the company is
48%, higher than its peer group average of 38.5%. However, its
higher debt level is justified on grounds of a higher Return on
Equity (ROE) of 11.5% than the peer group average.
The new offering will be made in accordance with the shelf
prospectus already filed with the Securities and Exchange
In Mar 2013, IPL issued 5.1% Series D Cumulative Perpetual
Preferred Stock for $200 million. The net proceeds after
deducting underwriting discount was $195 million which was used
for redemption of its 8.375% Series B Cumulative Preferred Stock
while the balance was used for working capital and other general
Companies need to borrow from the markets to refinance their
existing debts. Generally fresh debts are issued at a lower
interest rate than the existing ones and have extended maturity
periods. This policy gives an opportunity to the companies to
utilize the funds in their operations for a longer period.
Alliant Energy Corporation has a Zacks Rank #2 (Buy). Other
stocks performing well, with a comparable Zacks Rank of 2 are
Brookfield Infrastructure Partners L.P.