Western Massachusetts Electric may issue secured debt in 2010, existing senior notes to benefit

New York, July 2 - Western Massachusetts Electric Co. said it has requested permission to sell up to $150 million of either senior secured or unsecured debt.

If market conditions continue to favor secured debt, then the company expects to sell first mortgage bonds, according to an 8-K filing with the Securities and Exchange Commission.

No sales are anticipated this year, but they could come as early as the first quarter of 2010, Western Massachusetts Electric said.

Should it opt for first mortgage bonds, the existing senior notes will be exchanged for new first mortgage bonds identical to the existing notes but with better security.

The exchange may happen as soon as Oct. 1, according to the SEC filing.

Western Massachusetts Electric asked for permission to sell the new debt from the Massachusetts Department of Public Utilities.

The company is a subsidiary of Springfield, Mass.-based Northeast Utilities.

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