By Cristal Cody
Tupelo, Miss., Dec. 10 – Eversource Energy priced $900 million of senior notes (Baa1/A/BBB+) in two parts on Monday on the tight side of guidance, according to a market source and FWP filings with the Securities and Exchange Commission.
A $400 million tranche of 3.8% five-year notes was placed at 99.638 to yield 3.881%. The notes priced with a spread of 117 basis points over Treasuries. Price guidance was in the Treasuries plus 120 bps area, plus or minus 3 bps, slightly tighter than initial price talk in the Treasuries plus 125 bps area.
The company sold $500 million of 4.25% notes due April 1, 2029 at 99.305 to yield 4.335% and a spread of Treasuries plus 147 bps. Price guidance was in the Treasuries plus 150 bps area, plus or minus 3 bps. The notes were initially talked in the 155 bps over Treasuries spread area.
Barclays, Goldman Sachs & Co. LLC, PNC Capital Markets LLC, RBC Capital Markets LLC, TD Securities (USA) LLC, BNY Mellon Capital Markets LLC and U.S. Bancorp Investments Inc. were the bookrunners.
Proceeds will be used to repay some of the company’s $1.24 billion of short-term debt.
Boston-based Eversource Energy is engaged in the energy delivery business through utility subsidiaries.
| Issuer: | Eversource Energy
|
| Amount: | $900 million
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, Goldman Sachs & Co. LLC, PNC Capital Markets LLC, RBC Capital Markets LLC, TD Securities (USA) LLC, BNY Mellon Capital Markets LLC and U.S. Bancorp Investments Inc.
|
| Co-manager: | Williams Capital Group LP
|
| Trade date: | Dec. 10
|
| Settlement date: | Dec. 13
|
| Ratings: | Moody’s: Baa1
|
| S&P: A
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Description: | Series N senior notes
|
| Maturity: | Dec. 1, 2023
|
| Coupon: | 3.8%
|
| Price: | 99.638
|
| Yield: | 3.881%
|
| Spread: | Treasuries plus 117 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps before Nov. 1, 2023; thereafter at par
|
| Price guidance: | Treasuries plus 120 bps area, plus or minus 3 bps; initial talk at Treasuries plus 125 bps area
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Description: | Series O senior notes
|
| Maturity: | April 1, 2029
|
| Coupon: | 4.25%
|
| Price: | 99.305
|
| Yield: | 4.335%
|
| Spread: | Treasuries plus 147 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before Jan. 1, 2029; thereafter at par
|
| Price guidance: | Treasuries plus 150 bps area, plus or minus 3 bps; initial talk at Treasuries plus 155 bps area
|
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