By Stephanie N. Rotondo
Portland, Ore., Dec. 16 - Unitil Corp. said Tuesday that its subsidiary Granite State Gas Transmission issued $10 million principal amount senior unsecured notes through a private placement.
The deal was completed on Dec. 15.
The notes bear interest at 7.15% and mature in 2018. Unitil has agreed to guarantee the payment of principal, interest and other amounts on the bonds. However, the guarantee terminates if Granite State reorganizes and merges with Northern Utilities Inc.
Granite State's issuance is in addition to the notes issued by Northern Utilities, completed on Dec. 3. That two-tranche deal included $50 million of 7.72% senior notes, series B, due Dec. 3, 2038 and $30 million of 6.95% senior notes, series A, due Dec. 3, 2018.
Proceeds from the transaction will be used to repay some of the bridge financing used for Unitil's recent purchase of Granite State and Northern Utilities on Dec. 1.
RBC Capital Markets Corp. acted as placement agent.
Unitil is a Hampton, N.H.-based public utility holding company. Granite State is a natural gas provider.
| Issuer: | Granite State Gas Transmission
|
| Security description: | Senior unsecured notes
|
| Amount: | $10 million
|
| Coupon: | 7.15%
|
| Maturity: | 2018
|
| Average life: | Nine years
|
| Placement agent: | RBC Capital Markets Corp.
|
| Pricing date: | Sept. 12
|
| Settlement: | Dec. 15
|
| Distribution: | Private placement
|
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