Summary
This 8-K filing by Northeast Utilities (now Eversource Energy) on January 21, 2015, reports on the company's issuance of new senior notes. Specifically, the company issued $150 million in Series G Senior Notes due in 2018 with a 1.60% interest rate and $300 million in Series H Senior Notes due in 2025 with a 3.15% interest rate. These notes are unsecured obligations of the company and were issued under an underwriting agreement and a sixth supplemental indenture. The primary purpose of this issuance appears to be a capital raise for general corporate purposes, a common practice for utility companies to fund operations, infrastructure investments, or refinance existing debt. Investors should note the maturity dates and interest rates associated with these new debt instruments, which will impact the company's future interest expense and cash flow obligations. The total aggregate principal amount raised is $450 million.
Key Highlights
- 1Northeast Utilities issued $450 million in aggregate principal amount of Senior Notes on January 15, 2015.
- 2The issuance comprised $150 million of Series G Senior Notes due January 15, 2018, carrying a 1.60% annual interest rate.
- 3The issuance also included $300 million of Series H Senior Notes due January 15, 2025, carrying a 3.15% annual interest rate.
- 4The Notes are unsecured obligations of Northeast Utilities.
- 5The issuance was conducted under an Underwriting Agreement with Barclays Capital Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, and RBC Capital Markets, LLC.
- 6The Notes were issued under a Sixth Supplemental Indenture, supplementing a previous indenture dated April 1, 2002.
- 7Interest payments are semi-annual, payable on January 15 and July 15, beginning July 15, 2015.