8-KMaterial AgreementsFinancial EventsExhibits & Filings

EVERSOURCE ENERGY 8-K Report, Material Agreement (Sep 12, 2013)

Filed September 12, 2013For Securities:ES

Summary

This 8-K filing reports on material amendments to the credit facilities of Northeast Utilities (NU) and its subsidiary NSTAR Electric Company, effective September 6, 2013. The primary changes involve increasing the aggregate principal amount available under NU's credit agreement and extending its expiration date, along with a significant increase in CL&P's borrowing sublimit. Additionally, NSTAR Electric Company's credit agreement saw its expiration date extended. These amendments are aimed at enhancing the companies' liquidity and financial flexibility for general corporate purposes, capital expenditures, and debt repayment. Investors should note that these credit facility adjustments are accompanied by an increase in the maximum aggregate principal amount outstanding under NU's commercial paper program. The termination of CL&P's separate credit facility is also reported, with no material termination penalties incurred. Overall, these actions suggest a proactive approach by Northeast Utilities to manage its debt obligations and ensure adequate funding for its ongoing operations and strategic initiatives.

Key Highlights

  • 1Northeast Utilities (NU) amended its Credit Agreement, increasing the total principal amount available from $1.15 billion to $1.45 billion.
  • 2The expiration date for NU's Credit Agreement was extended from July 25, 2017, to September 6, 2018.
  • 3CL&P's borrowing sublimit under the NU Credit Agreement was increased from $300 million to $600 million.
  • 4NSTAR Electric Company's Credit Agreement expiration date was also extended to September 6, 2018.
  • 5The maximum aggregate principal amount of NU's commercial paper program was increased from $1.15 billion to $1.45 billion.
  • 6The purpose of these facilities and commercial paper program is for working capital, capital expenditures, debt repayment, and to backstop commercial paper programs.
  • 7The separate CL&P Facility was terminated effective September 6, 2013, with no material termination penalties.

Frequently Asked Questions

The primary changes are an increase in the total available borrowing amount from $1.15 billion to $1.45 billion, an extension of the credit agreement's expiration date to September 6, 2018, and a significant boost to CL&P's borrowing sublimit. NSTAR Electric's credit agreement also had its expiration date extended.

These adjustments are intended to provide NU and its subsidiaries with enhanced financial flexibility. The funds can be used for working capital needs, capital expenditures, repayment of existing debt, and to support their commercial paper programs.

Yes, the maximum aggregate principal amount of commercial paper notes that can be outstanding at any time under NU's program has been increased from $1.15 billion to $1.45 billion, aligning with the increase in the credit facilities.

The filing states that the CL&P Facility was terminated effective September 6, 2013, and importantly, no material termination penalties were incurred as a result of this termination.