8-KRegulation FDExhibits & Filings

EVERSOURCE ENERGY 8-K Report, Regulation FD Disclosure (Jul 2, 2009)

Filed July 2, 2009For Securities:ES

Summary

This Form 8-K filing by EVERSOURCE ENERGY (specifically its subsidiary Western Massachusetts Electric Company, or WMECO) on July 2, 2009, announces a significant development regarding its outstanding unsecured senior notes. WMECO has filed a petition with the Massachusetts Department of Public Utilities (DPU) to amend and restate its Indenture. The primary purpose of this action is to allow for the collateralization of these Senior Notes with a first mortgage lien on WMECO's property. This move is a precursor to potentially issuing first mortgage bonds for future capital needs. Importantly, under the terms of the existing Indenture, if WMECO decides to issue these secured bonds, it will be legally obligated to provide the same level of collateral security (equally and ratably) to the holders of the existing Senior Notes. This suggests a proactive step to strengthen its financial structure and potentially enhance creditworthiness for future financing.

Key Highlights

  • 1Western Massachusetts Electric Company (WMECO), a subsidiary of EVERSOURCE ENERGY, filed a petition with the Massachusetts Department of Public Utilities (DPU) on July 2, 2009.
  • 2The petition seeks to amend and restate the Indenture governing WMECO's unsecured senior notes.
  • 3The proposed amendment aims to allow the Senior Notes to be collateralized by a first mortgage lien on WMECO's property.
  • 4This action is a necessary step before WMECO can issue first mortgage bonds to finance future capital requirements.
  • 5If WMECO issues first mortgage bonds, current Senior Note holders will be secured equally and ratably.
  • 6The proposed collateralization is subject to approval by the DPU.

Frequently Asked Questions

The main purpose is to amend its existing Indenture to allow its outstanding unsecured senior notes to be secured by a first mortgage lien on WMECO's property. This is a prerequisite for potentially issuing first mortgage bonds in the future.

If WMECO proceeds with issuing first mortgage bonds after DPU approval, the current holders of the unsecured senior notes will receive equal and ratable collateral security. This could potentially enhance the security of their investment.

No, this filing is a preliminary step. WMECO has notified noteholders that it has filed the petition, and the potential issuance of first mortgage bonds and the subsequent securing of existing notes are contingent on DPU approval and WMECO's future decision to pursue such financing.

The DPU must approve WMECO's petition to amend and restate the Indenture to allow for the collateralization of the Senior Notes. Their approval is a necessary condition before WMECO can proceed with these actions.