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Energy capital raises in 2017: Power sector adds $2.34B to YTD debt raises

This Data Dispatch will be updated throughout 2017 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 $30.51 billion as of March 24, according to S&P Global Market Intelligence data. The total comprises $23.08 billion of senior debt, $7.14 billion of common equity and $290 million of preferred equity in 2017.

By sector, power companies have raised $16.03 billion of capital, midstream companies have raised $12.77 billion, the coal sector has raised $900 million and gas utilities have raised $810 million. Of the total common equity raises in 2017, energy companies raised $5.29 billion from 11 follow-on offerings, $1.32 billion from three private placement transactions, about $310 million from six at-the-market transactions, $160 million from two other transactions and $51.3 million from an initial public offering.

* Duke Energy Ohio Inc. on March 22 sold $100 million of its 3.7% first mortgage bonds due June 15, 2046. The Duke Energy Corp. subsidiary will use the net proceeds to help finance CapEx for ongoing construction and capital maintenance and for general corporate purposes. Citigroup Global Markets Inc. and Loop Capital Markets LLC acted as joint book-running managers.

* Edison International on March 22 sold $400 million of its 2.125% senior unsecured notes due April 15, 2020, to repay commercial paper borrowings and/or for general corporate purposes. Barclays Capital Inc. and Wells Fargo Securities LLC served as joint book-running managers.

* Dominion Resources Inc. on March 21 sold $100 million of its series 2015B 3.9% senior notes due Oct. 1, 2025, to short-term debt and for general corporate purposes. Morgan Stanley & Co. International plc acted as the sole book runner.

* Southern California Edison Co. on March 21 sold $700 million of its 4% series 2017A first and refunding mortgage bonds due April 1, 2047, to repay commercial paper borrowings and for general corporate purposes. J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and SunTrust Robinson Humphrey Inc. served as joint book-running managers, among others.

* Genesis Energy LP on March 20 sold approximately $141 million worth of 4.6 million common units at $30.65 apiece. The partnership will use the net proceeds for general partnership purposes, including funding acquisitions and debt reduction. Wells Fargo Securities LLC and Robert W. Baird & Co. Inc. acted as joint book-running managers.

* Corning Natural Gas Holding Corp. on March 20 sold $874,175 of 6% series A cumulative preferred stock due Sept. 30, 2023. The company will use the net proceeds for general corporate purposes.

* Chugach Electric Association Inc. on March 17 sold $40 million of 3.43% series 2017A first mortgage bonds due March 15, 2037, to repay outstanding commercial paper and for general corporate purposes.

* Foresight Energy LP and its Foresight Energy LLC and Foresight Energy Finance Corp. subsidiaries March 17 sold $425 million of 11.5% senior secured second-lien notes due April 1, 2023, to help refinance their second-lien senior secured PIK notes due 2021, second-lien senior secured exchangeable PIK notes due 2017 and outstanding credit facilities.

* Pinnacle West Capital Corp. subsidiary Arizona Public Service Co. on March 16 sold $250 million of 4.35% senior unsecured notes due Nov. 15, 2045, to refinance commercial paper borrowings and/or replenish cash temporarily used to fund CapEx. BNP Paribas Securities Corp., Merrill Lynch Pierce Fenner & Smith Inc., RBC Capital Markets LLC and U.S. Bancorp Investments Inc. served as joint book-running managers.

* Spire Inc. on March 15 sold $100 million of 3.93% senior unsecured notes due March 15, 2027, to repay debt and for general corporate purposes.

* Virginia Electric and Power Co. on March 13 sold $750 million of its series 2017A 3.5% senior unsecured notes due March 15, 2027, to repay short-term debt and for general corporate purposes. Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC acted as joint book-running managers.

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