By Aleesia Forni
Virginia Beach, Jan. 12 – Northeast Utilities priced $450 million of senior notes (Baa1/BBB+/BBB+) in two maturities on Monday, according to a market source and two separate FWP filings with the Securities and Exchange Commission.
The offering included $150 million of 1.6% notes due July 15, 2018 priced at 99.88 to yield 1.641%, or Treasuries plus 75 basis points.
The notes were guided in the 90 bps area over Treasuries.
A second tranche was $300 million of 3.15% notes due Jan. 15, 2025 priced with a spread of Treasuries plus 125 bps. The notes sold at 99.898 to yield 3.162%.
The notes were guided in the Treasuries plus 137.5 bps area.
Bookrunners were Barclays, BofA Merrill Lynch, RBS Securities Inc., J.P. Morgan Securities LLC and MUFG.
Proceeds will be used to repay short-term debt.
The public utility holding company is based in West Springfield, Mass.
| Issuer: | Northeast Utilities
|
| Issue: | Senior notes
|
| Amount: | $450 million
|
| Bookrunners: | Barclays, BofA Merrill Lynch, RBS Securities Inc., J.P. Morgan Securities LLC, MUFG
|
| Co-manager: | Ramirez & Co. Inc.
|
| Trade date: | Jan. 12
|
| Settlement date: | Jan. 15
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| 3.5-year notes
|
| Amount: | $150 million
|
| Maturity: | July 15, 2018
|
| Coupon: | 1.6%
|
| Price: | 99.88
|
| Yield: | 1.641%
|
| Spread: | Treasuries plus 75 bps
|
| Price talk: | 90 bps area
|
| Make-whole call: | 12.5 bps
|
|
|
| 10-year notes
|
| Amount: | $300 million
|
| Maturity: | Jan. 15, 2025
|
| Coupon: | 3.15%
|
| Price: | 99.898
|
| Yield: | 3.162%
|
| Spread: | Treasuries plus 125 bps
|
| Price talk: | 137.5 bps area
|
| Make-whole call: | 20 bps prior to Oct. 15, 2024, then callable at par
|
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