By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., May 9 – Eversource Energy priced $1.8 billion of senior notes (Baa1/BBB+/BBB+) in three parts, according to multiple FWPs filed with the Securities and Exchange Commission.
The $450 million 4.75% series AA senior notes due May 15, 2026 priced at 99.941 to yield 4.771%, or at Treasuries plus 105 basis points after price talk in the Treasuries plus 125 bps area.
They feature a make-whole call at Treasuries plus 20 bps.
The $800 million 5.125% series BB senior notes due May 15, 2033 priced at 99.844 to yield 5.145%, or at Treasuries plus 162.5 bps after price talk in the Treasuries plus 185 bps area.
They feature a make-whole call at Treasuries plus 25 bps before Feb. 15, 2033. The last three months, there will be a par call option.
The $550 million 5.45% series Z senior notes due March 1, 2028 priced at 102.732 plus accrued interest from March 6. The add-on notes priced with a yield of 4.796%, or at Treasuries plus 130 bps after price talk in the Treasuries plus 145 bps area.
The notes are callable at Treasuries plus 20 bps before Feb. 1, 2028 and on or after that date at par.
The series Z notes will be part of the same series and will be fungible with the $750 million of 5.45% senior notes issued March 6.
Barclays, Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC are acting as global coordinators of the offering.
BofA Securities, Inc., BNY Mellon Capital Markets, LLC, J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC are joint bookrunners.
Proceeds will be used to repay all $350 million of the company’s floating rate senior notes, series T, maturing on Aug. 15, repay all $400 million of the company’s 3.8% senior notes, series N, maturing on Dec. 1, 2023 and repay a portion of the company’s outstanding short-term debt. The company had approximately $1.65 billion of short-term debt with a weighted average interest rate of 5.26% on May 4.
Eversource is based in Boston and Hartford, Conn. The company is an energy delivery business that operates through utility subsidiaries throughout New England.
| Issuer: | Eversource Energy
|
| Amount: | $1.8 billion
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| Bookrunners; | Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC (global coordinators), BofA Securities, Inc., BNY Mellon Capital Markets, LLC, J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | In-house counsel and Ropes & Gray LLP
|
| Counsel to bookrunners: | Choate, Hall & Stewart LLP
|
| Trade date: | May 8
|
| Settlement date: | May 11
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB+
|
|
|
| Series AA notes
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| Amount: | $450 million
|
| Issue: | Senior notes, series AA
|
| Maturity: | May 15, 2026
|
| Co-manager: | Roberts & Ryan Investments, Inc.
|
| Coupon: | 4.75%
|
| Price: | 99.941
|
| Yield: | 4.771%
|
| Spread: | Treasuries plus 105 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps
|
| Price talk: | Treasuries plus 125 bps area
|
| Cusip: | 30040WAV0
|
|
|
| Series BB notes
|
| Amount: | $800 million
|
| Issue: | Senior notes, series BB
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| Maturity: | May 15, 2033
|
| Co-manager: | Samuel A. Ramirez & Co., Inc.
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| Coupon: | 5.125%
|
| Price: | 99.844
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| Yield: | 5.145%
|
| Spread: | Treasuries plus 162.5 bps
|
| Call features: | At Treasuries plus 25 bps before Feb. 15, 2033; after at par
|
| Price talk: | Treasuries plus 185 bps area
|
| Cusip: | 30040WAU2
|
|
|
| Series Z notes
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| Amount: | $550 million
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| Issue: | Senior notes, series Z add-on
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| Maturity: | March 1, 2028
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| Co-manager: | Siebert Williams Shank & Co., LLC
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| Coupon: | 5.45%
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| Price: | 102.732
|
| Yield: | 4.796%
|
| Spread: | Treasuries plus 130 bps
|
| Call features: | At Treasuries plus 20 bps before Feb. 1, 2028; after at par
|
| Price talk: | Treasuries plus 145 bps
|
| Cusip: | 30040WAT5
|
| Total issue: | $1.3 billion, including $750 million issued March 6
|
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