Published on 1/16/2024 in the Prospect News Investment Grade Daily.
New Issue: Eversource Energy sells $1 billion notes in parts due 2027 and 2034
By Wendy Van Sickle
Columbus, Ohio, Jan. 16 – Eversource Energy priced $1 billion of fixed-rate notes (Baa2/BBB+/BBB) on Tuesday, according to FWP filings with the Securities and Exchange Commission.
The company priced $350 million of 5% five-year senior notes at a spread of 100 basis points over Treasuries. The notes priced at 99.935 to yield 5.025%.
The company priced $650 million of 5.5% 10-year senior notes at a spread of 150 bps over Treasuries. The notes priced at 99.467 to yield 5.571%.
BofA Securities, Inc., BNY Mellon Capital Markets, LLC, Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, TD Securities (USA) LLC and Wells Fargo Securities, LLC are the joint bookrunners.
Proceeds will be used to repay a portion of the company’s outstanding short-term debt which, as of Jan. 11, totaled about $1.79 billion with a weighted average interest rate of 5.54%.
Eversource Energy is a public utility holding company with headquarters in Boston and in Hartford, Conn.
| Issuer: | Eversource Energy
|
| Amount: | $1 billion
|
| Issue: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., BNY Mellon Capital Markets, LLC, Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, TD Securities (USA) LLC and Wells Fargo Securities, LLC
|
| Co-managers: | Siebert Williams Shank & Co., LLC
|
| Global coordinators: | Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: In-house counsel and Ropes & Gray LLP
|
| Counsel to underwriters: | Choate, Hall & Stewart LLP
|
| Pricing date: | Jan. 16
|
| Settlement date: | Jan. 19
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB+
|
| Fitch: BBB
|
|
|
| 2027 notes
|
| Amount: | $350 million
|
| Maturity: | Jan. 1, 2027
|
| Coupon: | 5%
|
| Price: | 99.935
|
| Yield: | 5.025%
|
| Spread: | Treasuries plus 100 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps
|
| Cusip: | 30040WAY4
|
|
|
| 2034 notes
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| Amount: | $650 million
|
| Maturity: | Jan. 1, 2034
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| Coupon: | 5.5%
|
| Price: | 99.467
|
| Yield: | 5.571%
|
| Spread: | Treasuries plus 150 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps until Oct. 1, 2033; thereafter at par
|
| Cusip: | 30040WAX6
|
|
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