By Wendy Van Sickle
Columbus, Ohio, Sept. 18 – Nstar Electric Co., doing business as Eversource Energy, priced $150 million of 5.6% five-year debentures (A1/A/A+) with a spread of 115 basis points over Treasuries on Monday, according to an FWP filed with the Securities and Exchange Commission.
The debentures priced at 99.964 to yield 5.608%.
The securities will feature a make-whole call at a discount rate of Treasuries plus 20 bps until Sept. 1, 2028, followed by a par call until maturity.
BofA Securities, Inc., Goldman Sachs & Co. LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC and TD Securities (USA) LLC are the joint bookrunning managers.
The company intends to use proceeds to repay at maturity all its $80 million outstanding 3.88% senior notes, series G, due 2023 maturing on Nov. 15, to repay a portion of outstanding short-term debt and for general corporate purposes. As of Sept. 14, the company had approximately $265 million of short-term debt outstanding with a weighted-average annual interest rate of 5.36%.
The Boston-based company is engaged in the energy delivery business through utility subsidiaries.
| Issuer: | Nstar Electric Co., doing business as Eversource Energy
|
| Amount: | $150 million
|
| Issue: | Debentures
|
| Maturity: | Oct. 1, 2028
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| Bookrunners: | BofA Securities, Inc., Goldman Sachs & Co. LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC and TD Securities (USA) LLC
|
| Co-manager: | Siebert Williams Shank & Co., LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | Ropes & Gray LLP and in-house counsel
|
| Counsel to underwriters: | Choate, Hall & Stewart LLP
|
| Coupon: | 5.6%
|
| Price: | 99.964
|
| Yield: | 5.608%
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| Spread: | Treasuries plus 115 bps
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| Call: | Make-whole call at Treasuries plus 20 bps until Sept. 1, 2028, then a par call
|
| Trade date: | Sept. 18
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| Settlement date: | Sept. 25
|
| Ratings: | Moody’s: A1
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| S&P: A
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| Fitch: A+
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| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 175 bps area
|
| Cusip: | 67021CAU1
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