8-KFinancial EventsExhibits & Filings

EVERSOURCE ENERGY 8-K Report, Financial Obligation (Aug 20, 2020)

Filed August 20, 2020For Securities:ES

Summary

Eversource Energy (ES) filed an 8-K on August 20, 2020, reporting a significant debt issuance that occurred on August 14, 2020. The company raised a total of $1.2 billion by issuing additional senior notes across three series: $300 million of 3.45% Series P Senior Notes due 2050, $300 million of 0.80% Series Q Senior Notes due 2025, and $600 million of 1.65% Series R Senior Notes due 2030. These unsecured notes were issued under existing indentures and are intended to provide the company with additional capital. This issuance represents an expansion of Eversource Energy's outstanding debt obligations. Investors should note the varying interest rates and maturity dates associated with these new notes, with the 2050 notes carrying a notably higher coupon rate reflecting their longer term. The proceeds from this offering are presumed to be for general corporate purposes, which may include funding ongoing projects and capital expenditures within the company's regulated utility operations.

Key Highlights

  • 1Eversource Energy issued $1.2 billion in aggregate principal amount of Senior Notes.
  • 2The issuance consisted of three tranches: $300 million of 3.45% Notes due 2050, $300 million of 0.80% Notes due 2025, and $600 million of 1.65% Notes due 2030.
  • 3The 2050 Notes are an add-on to an existing series, increasing the total outstanding principal for this maturity to $650 million.
  • 4Interest payments for the 2025 and 2030 Notes are semi-annual, payable on February 15 and August 15, starting February 15, 2021.
  • 5Interest payments for the 2050 Notes are semi-annual, payable on January 15 and July 15, starting January 15, 2021.
  • 6The notes are unsecured obligations of Eversource Energy.
  • 7The filing includes the Underwriting Agreement and relevant Supplemental Indentures as exhibits.

Frequently Asked Questions

The primary purpose of this 8-K filing was to report on the creation of direct financial obligations, specifically the issuance of $1.2 billion in Senior Notes by Eversource Energy on August 14, 2020.

Eversource Energy issued a total of $1.2 billion in Senior Notes. This includes $300 million of 3.45% Senior Notes due 2050, $300 million of 0.80% Senior Notes due 2025, and $600 million of 1.65% Senior Notes due 2030. These notes are unsecured.

This issuance increases Eversource Energy's total debt by $1.2 billion. Investors should consider the increased interest expense and the repayment obligations associated with the different maturity dates and coupon rates of these new notes.

More detailed information can be found in the exhibits attached to the 8-K filing, including the Underwriting Agreement dated August 11, 2020, and the Thirteenth Supplemental Indenture dated August 1, 2020, which establish the terms of the Series Q (2025) and Series R (2030) Notes. Information for the Series P (2050) Notes is incorporated by reference to a previous filing.