By Cristal Cody
Tupelo, Miss., Jan. 3 – Eversource Energy priced a $650 million two-part offering of senior notes (Baa1/A/BBB+) in a new issue and an add-on to an existing issue on Wednesday, according to a market source and FWP filings with the Securities and Exchange Commission.
Eversource Energy placed a $200 million add-on to its 2.5% series I notes due March 15, 2021 at 100.177 to yield 2.44%. The reopened notes priced with a Treasuries plus 42 basis points spread.
The company originally sold $250 million of the notes at 99.789 to yield 2.545%, or Treasuries plus 112 bps, on March 7, 2016. The total outstanding now is $450 million.
The company also priced $450 million of new 3.3% series M notes due Jan. 15, 2028 at 99.932 to yield 3.308% and a spread of Treasuries plus 85 bps.
Both tranches priced on the tight side of guidance.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC, Wells Fargo Securities LLC, PNC Capital Markets LLC and U.S. Bancorp Investments Inc. were the bookrunners.
Proceeds will be used to repay at maturity the company’s $150 million of series G senior notes due Jan. 15, 2018, repay at maturity all $300 million of the series E senior notes due May 1, 2018 and repay a portion of Eversource’s short-term debt.
The Boston-based company is engaged in the energy delivery business through utility subsidiaries.
| Issuer: | Eversource Energy
|
| Amount: | $650 million
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| Description: | Senior notes
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| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC, Wells Fargo Securities LLC, PNC Capital Markets LLC and U.S. Bancorp Investments Inc.
|
| Co-manager: | Williams Capital Group LP
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| Trade date: | Jan. 3
|
| Settlement date: | Jan. 8
|
| Ratings: | Moody’s: Baa1
|
| S&P: A
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
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| Amount: | $200 million reopening
|
| Maturity: | March 15, 2021
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| Coupon: | 2.5%
|
| Price: | 100.177
|
| Yield: | 2.44%
|
| Spread: | Treasuries plus 42 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps before Feb. 15, 2021; thereafter at par
|
| Price guidance: | Treasuries plus 45 bps area
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| Total outstanding: | $450 million, including $250 million of notes priced at 99.789 to yield 2.545%, or Treasuries plus 112 bps, on March 7, 2016
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| Ten-year notes
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| Amount: | $450 million
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| Maturity: | Jan. 15, 2028
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| Coupon: | 3.3%
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| Price: | 99.932
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| Yield: | 3.308%
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| Spread: | Treasuries plus 85 bps
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| Call features: | Make-whole call at Treasuries plus 15 bps before Oct. 15, 2027; thereafter at par
|
| Price guidance: | Treasuries plus 90 bps area
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