Summary
This 8-K filing from Eversource Energy (formerly Northeast Utilities) reports on the establishment of new credit facilities and the termination of existing ones. Specifically, on September 24, 2010, Northeast Utilities (NU) and its key subsidiaries, the Operating Companies (CL&P, PSNH, WMECO, and Yankee Gas), entered into new three-year unsecured revolving credit agreements. The new facilities provide NU with access to up to $500 million and the Operating Companies with access to up to $400 million. These agreements replace previously existing five-year credit agreements that were terminated on the same date. The new credit facilities are set to expire on September 24, 2013, with options for two one-year extensions.
Key Highlights
- 1Eversource Energy (as Northeast Utilities) and its subsidiaries entered into new three-year unsecured revolving credit agreements.
- 2The parent company, NU, secured a credit facility of up to $500 million.
- 3The Operating Companies (CL&P, PSNH, WMECO, Yankee Gas) secured a joint credit facility of up to $400 million.
- 4These new credit facilities are effective as of September 24, 2010, and mature on September 24, 2013.
- 5The agreements include provisions for up to two one-year extensions.
- 6New credit facilities replace previous five-year credit agreements that were terminated on the same date.
- 7The new agreements contain customary representations, warranties, and covenants, including restrictions on liens, asset dispositions, and mergers.
Frequently Asked Questions
This filing reports the entry into new material definitive agreements, specifically new unsecured revolving credit facilities for Northeast Utilities (NU) and its operating subsidiaries, and the termination of their previous credit agreements. This indicates a refinancing or restructuring of their short-term borrowing capacity.
NU entered into a three-year unsecured revolving credit agreement for up to $500 million. Its subsidiaries (CL&P, PSNH, WMECO, Yankee Gas) entered into a joint three-year unsecured revolving credit agreement for up to $400 million. Both facilities are effective September 24, 2010, mature on September 24, 2013, and have options for two one-year extensions.
The previous five-year credit agreements, dated December 9, 2005, were terminated because they were replaced by the new, more recent three-year credit agreements established on September 24, 2010. This suggests a strategic decision to update and potentially renegotiate borrowing terms.
The aggregate credit limits of $500 million for NU and $400 million for the Operating Companies represent the maximum amount of revolving loans and, in NU's case, standby letters of credit that can be drawn under these facilities at any given time. This provides investors insight into the company's available liquidity and short-term borrowing capacity.