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Energy capital raises in 2018: Power sector continues brisk pace of debt raises

This Data Dispatch will be updated throughout 2018 to tally capital offerings in the U.S. energy industry. Click here for a spreadsheet listing all energy capital offerings since Nov. 4, 2009.

The U.S. energy industry aggregate year-to-date capital raised reached $42.55 billion as of March 9, according to S&P Global Market Intelligence data. The total comprises $34.11 billion of senior debt, $3.78 billion of common equity, $3.76 billion of preferred equity and $900 million of subordinated debt in 2018.

By sector, power companies have raised $22.56 billion, midstream companies have raised $19.89 billion and gas utilities have raised $100 million. Of the total common equity raises in 2018, energy companies raised $2.23 billion from four follow-on offerings, $980 million from three private placement transactions and $560 million from three at-the-market transaction.

* USA Compression Partners LP on March 9 sold $725 million of 6.875% Senior unsecured notes due 2016 to fund the cash purchase price of the partnership's acquisition of all of the issued and outstanding membership interests in CDM Resource Management I LLC and CDM environmental & technical services LLC from Energy Transfer Partners LP.

* CNX Midstream Partners LP on March 9 sold $400 million of 6.5% senior unsecured notes due March 15, 2026, to fund the acquisition of 95% interest in the Shirley-Pennsboro gathering system from CNX Resources Corp., repay revolver debt and for general partnership purposes. J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and PNC Capital Markets LLC served as joint book-running managers, among others.

* Transcontinental Gas Pipe Line Co. LLC on March 8 sold $1.0 billion of senior notes. The offering was comprised of $400 million of its 4% senior notes due March 15, 2028, and $600 million of its 4.6% senior notes due March 15, 2048. The Williams Partners LP subsidiary will use proceeds to repay $250 million of 6.05% senior notes due June 15, 2018, and for general corporate purposes such as CapEx funding.

* Edison International on March 8 sold $550 million of its 4.125% senior notes due March 15, 2028, to repay term loan agreement and commercial paper borrowings, as well as for general corporate purposes. Barclays Capital Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC acted as joint book-running managers, among others.

* NextEra Energy Capital Holdings Inc. on March 7 sold $800 million of its floating rate debentures due Sept. 3, 2019. The NextEra Energy Inc. subsidiary will use the net proceeds to fund investments in energy and power projects and for other general corporate purposes, including the repayment of its outstanding commercial paper obligations. Morgan Stanley & Co. LLC served as the sole book-running manager.

* PNM Resources Inc. on March 7 sold $300 million of 3.250% senior notes due March 9, 2021, to repay its three-year term loan due June 8, its borrowings under its revolver due Oct. 31, 2022, and for general corporate purposes. Wells Fargo Securities LLC and MUFG Securities Americas Inc. acted as joint book-running managers.

* Duke Energy Corp. on March 6 sold $1.58 billion of 21,275,000 shares of its common stock. The company will use the net proceeds from the offering for general corporate purposes. Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Barclays Capital Inc. served joint book-running managers, among others.

* CMS Energy Corp. on March 5 sold $200 million of its 5.625% junior subordinated unsecured notes due March 15, 2078, to repay a portion of its $225 million outstanding term loan. Merrill Lynch Pierce Fenner & Smith Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC acted as joint book-running managers.

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