Summary
Eversource Energy (ES) has reported the physical settlement of its equity forward sale agreement with Goldman Sachs & Co. LLC. The company delivered the remaining 1,500,000 shares on March 23, 2020, and 4,460,000 shares on March 26, 2020, generating total net proceeds of $419.8 million. These funds were subsequently utilized to repay short-term debt, strengthening the company's liquidity position.
Key Highlights
- 1Eversource Energy completed the physical settlement of its equity forward sale agreement.
- 2The company delivered a total of 6,000,000 common shares under the final settlement.
- 3Total net proceeds from the final settlement amounted to $419.8 million.
- 4Proceeds from this settlement were used to repay outstanding short-term debt.
- 5The initial forward sale agreement was entered into on June 4, 2019, with Goldman Sachs & Co. LLC.
- 6Over the entire agreement, Eversource delivered 11,960,000 common shares, raising aggregate net proceeds of $845.2 million.
Frequently Asked Questions
The equity forward sale agreement, entered into on June 4, 2019, was part of an equity offering designed to raise capital. It allowed Eversource Energy to secure proceeds upfront while deferring the physical delivery of a portion of the shares to a later date.
Eversource Energy raised an aggregate of $845.2 million in net proceeds from the physical settlement of the entire forward sale agreement, having delivered a total of 11,960,000 common shares.
The net proceeds of $419.8 million from the final settlement were used by Eversource Energy to repay its short-term debt.
The equity forward sale agreement was established in June 2019 as part of an equity offering. The shares were delivered from previously authorized shares, and the settlement process itself represents the completion of that offering, with the proceeds now used to manage debt.