Eversource Energy Prices $750 Million Junior Subordinated Notes Due 2056
Summary
Eversource Energy has finalized the terms for a $750 million offering of junior subordinated notes due 2056, securing significant capital with a 6.100% coupon.
Key Events
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Finalizes $750 Million Debt Offering
Eversource Energy priced $750 million in Junior Subordinated Notes, Series A, due August 15, 2056, at 100% of the principal amount.
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Sets Coupon Rate and Terms
The notes carry a fixed coupon of 6.100% per year until August 15, 2031, after which the rate will reset every five years based on the Five-year U.S. Treasury Rate plus a spread, with a 6.100% floor.
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Enhances Financial Flexibility
The offering includes an optional deferral of interest for up to 10 consecutive years and received investment-grade ratings (Baa3/BBB-/BB+), providing crucial liquidity and financial stability following recent capital structure challenges.
Analysis
This Free Writing Prospectus (FWP) finalizes the pricing and terms of Eversource Energy's $750 million offering of Junior Subordinated Notes, Series A, due 2056. The successful issuance of these notes provides substantial capital, which is particularly important given the company's recent denial of its $2.4 billion Aquarion water business sale and a new $900 million guarantee disclosed in its latest 10-K. The notes, featuring a 6.100% coupon and investment-grade ratings (Baa3/BBB-/BB+), enhance the company's financial flexibility and liquidity, helping to manage its capital structure and ongoing operational needs. The optional deferral of interest provides the company with additional financial flexibility.
At the time of this filing, ES was trading at $74.90 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $28.1B. The 52-week trading range was $52.28 to $75.25. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.