Filed under Rule 433
File No. 333-224366-01
Final Term Sheet
Arizona Public Service Company
$105,000,000 2.60% Notes due 2029
November 16, 2020
Issuer: | | Arizona Public Service Company |
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Expected Ratings (Moody’s / S&P / Fitch): | | A2 (negative) / A- (stable) / A (negative) |
| | 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. |
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Trade Date: | | November 16, 2020 |
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Settlement Date: | | November 19, 2020 (T+3) |
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Security: | | 2.60% Notes due 2029 (the “New Notes”), which will be part of the same series of debt securities issued on August 19, 2019 by the Issuer in the amount of $300,000,000 (the “Existing Notes”) |
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Principal Amount: | | $105,000,000 |
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Interest Payment Dates: | | February 15 and August 15, commencing February 15, 2021 |
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Maturity Date: | | August 15, 2029 |
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Interest Rate: | | 2.60% |
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Benchmark Treasury: | | 0.875% due November 15, 2030 |
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Benchmark Treasury Price / Yield: | | 99-22+ / 0.906% |
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Spread to Benchmark Treasury: | | +75 basis points |
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Yield to Maturity: | | 1.656% |
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Public Offering Price: | | 107.447% per note plus accrued interest from and including August 15, 2020 to but excluding the Settlement Date (such accrued interest totaling $712,833.33) |
Optional Redemption: | | Make-whole call at any time prior to May 15, 2029 at Treasury rate plus 15 basis points and, thereafter, at par |
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Qualified Reopening: | | The offering of the New Notes is expected to qualify as a “qualified reopening” of the Existing Notes under U.S. Treasury regulations; see “Certain Material United States Federal Income Tax Consequences” in the Preliminary Prospectus Supplement dated November 16, 2020 |
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CUSIP/ISIN: | | 040555 CZ5 / US040555CZ51 |
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Joint Book-Running Managers: | | Citigroup Global Markets Inc. |
| | KeyBanc Capital Markets Inc. |
| | MUFG Securities Americas Inc. |
Arizona Public Service Company has filed a registration statement (including a prospectus, as supplemented) with the Securities and Exchange Commission (“SEC”) for the offering to which this communication relates. Before you invest, you should read the prospectus (as supplemented) in that registration statement and other documents Arizona Public Service Company has filed with the SEC for more complete information about Arizona Public Service Company and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Arizona Public Service Company, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by contacting Citigroup Global Markets Inc. toll-free at 800-831-9146, KeyBanc Capital Markets Inc. toll-free at 866-227-6479 or MUFG Securities Americas Inc. toll-free at 877-649-6848.
Any disclaimers or other notices that may appear below are not applicable to this communication and should be disregarded. Such disclaimers were automatically generated as a result of this communication being sent via email or another communication system.
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