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UIL to sell bonds on acquisition of natural gas assets from Iberdrola
By Andrea Heisinger
New York, May 25 - The UIL Holdings Corp. will sell bonds as part of its acquisition of three gas companies from Iberdrola USA Inc., a company spokesman said on Tuesday.
UIL announced that it would acquire Southern Connecticut Gas Co., Connecticut Natural Gas Corp. and the Berkshire Gas Co. for $1.296 billion in cash from Iberdrola.
In order to fund the cash portion, UIL intends to issue debt and equity.
The debt will be bonds of some sort, said UIL spokesman Al Carbone.
"It could be private; it could be public," he said, adding that it would be the holding company's sale. Timing is unknown, and the acquisition will close in the first quarter of 2011.
Chief executive officer of UIL, James P. Torgerson, said in a press release that "it is an important objective for UIL to maintain the investment-grade credit rating for the holding company."
UIL Holdings is a subsidiary of electricity provider United Illuminating Co. and based in New Haven, Conn.
Iberdrola USA is a subsidiary of electric company Iberdrola SA and is based in Bilbao, Spain.
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