UIL Holdings plans about $436 million notes as part of acquisition

By Jennifer Chiou

New York, Sept. 13 - UIL Holdings Corp. announced plans to launch a roughly $436 million offering of senior notes to finance part of the cash portion of the company's previously announced acquisition of three gas companies from Iberdrola USA Inc.

In May, the company said it would acquire Southern Connecticut Gas Co., Connecticut Natural Gas Corp. and Berkshire Gas Co. for $1.3 billion in cash from Iberdrola.

At the time, a company spokesperson said that the bonds could be issued publicly or privately.

UIL noted that the acquisition is not contingent on the notes and vice versa, but the acquisition will not be completed without sufficient financing.

UIL Holdings is a subsidiary of electricity provider United Illuminating Co. and based in New Haven, Conn. Iberdrola USA is a subsidiary of electric company Iberdrola SA, which is based in Bilbao, Spain.

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