By Paul A. Harris
St. Louis, Sept. 24 - Northern Utilities, Inc. and Granite State Gas Transmission, Inc. have set prices in a $90 million three-tranche private placement of notes, according to a market source.
Northern Utilities priced $30 million of 10-year notes at a 325 basis point spread to Treasuries. The notes have a nine-year average life and were sold at par.
Northern Utilities also priced $50 million of 30-year notes at a 343 bps spread. The 30-year notes have a 5.5-year average life and were also priced at par.
Granite State Gas Transmission priced $10 million of 10-year notes at a 345 bps spread. The Granite State Gas 10-year notes have nine-year average life and were priced at par as well.
RBC Capital Markets was the placement agent.
The notes were all placed with insurance companies.
Settlement is pending.
The proceeds will be used, in part, to fund the acquisition of Northern Utilities and Granite State Gas Transmission by Unitil Corp. and NiSource Inc.
The issuers operate in the local natural gas distribution business, serving 52,000 customers in 44 communities in Maine and New Hampshire.
| Issuers: | Northern Utilities, Inc. and Granite State Gas Transmission, Inc.
|
| Total amount: | $90 million
|
| Placement agent: | RBC Capital Markets
|
| Expected rating: | NAIC 2
|
|
|
| 10-year Northern Utilities tranche
|
| Issuer: | Northern Utilities
|
| Amount: | $30 million
|
| Maturity: | 10 years
|
| Average life: | Nine years
|
| Coupon: | 325 bps over Treasuries
|
| Price: | Par
|
|
|
| 30-year Northern Utilities tranche
|
| Issuer: | Northern Utilities
|
| Amount: | $50 million
|
| Maturity: | 30 years
|
| Average life: | 5.5 years
|
| Coupon: | 343 bps over Treasuries
|
| Price: | Par
|
|
|
| 10-year Granite State tranche
|
| Issuer: | Granite State Gas Transmission
|
| Amount: | $10 million
|
| Maturity: | 10 years
|
| Average life: | Nine years
|
| Coupon: | 345 bps
|
| Price: | Par
|
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