Connecticut Light and Power Co. sold $300 million of 4% series 2018A first and refunding mortgage bonds due April 1, 2048.
The bonds will be part of the same series of securities the Eversource Energy subsidiary issued in March 2018 in an amount of $500 million.
The electric utility plans to use the proceeds to refinance short-term debt, including debt that was used to repay at maturity $250 million of its outstanding 5.50% first and refunding mortgage bonds 2009 series A due Feb. 1, fund capex and working capital. As of March 21, the utility had approximately $55 million of short-term debt outstanding.
Interest on the bonds is payable semiannually on April 1 and Oct. 1, starting Oct. 1. The bonds have a spread to benchmark Treasury of 100 basis points and were expected to be rated A1 by Moody's, AA- by S&P Global Ratings and A+ by Fitch Ratings, according to a March 25 free writing prospectus.
J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc. and Wells Fargo Securities LLC acted as joint book-running managers. Samuel A. Ramirez & Co. Inc. served as the sole co-manager.
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