Eversource Energy on May 30 priced a public offering of 15.6 million common shares at $72.50 apiece.
The company will directly offer 3,640,000 shares to underwriters, who also will have a 30-day option to directly purchase an additional 2,340,000 shares on the same terms.
In connection to the offering, the company entered an agreement for Goldman Sachs Co. LLC to become the forward counterparty. Goldman Sachs is borrowing from third parties and selling 11,960,000 shares to the underwriters in the offering.
Eversource Energy will initially not receive any proceeds from the sale of its shares by the forward counterparty. The company is expected to receive proceeds, subject to certain adjustments, in multiple settlements by May 29, 2020, following the settlement of the forward sale agreement.
The company plans to use net proceeds to repay a portion of its outstanding short-term debt under its commercial paper program, to fund capital spending to enhance reliability and fund clean energy initiatives, and for general corporate purposes.
The offering is expected to close on June 4, subject to the satisfaction of customary closing conditions.
Goldman Sachs & Co. LLC, Barclays Capital Inc., Citigroup and Wells Fargo Securities LLC are acting as joint-book running managers. Goldman Sachs & Co. LLC and Barclays Capital Inc. are acting as representatives of the underwriters.