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Energy capital raises in 2016: Southwestern's $1.25B equity issue leads week's offerings

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Essential Energy Insights - February 2021

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Six trends shaping the industries and sectors we cover in 2021

Six trends shaping the industries and sectors we cover in 2021


Energy capital raises in 2016: Southwestern's $1.25B equity issue leads week's offerings

Asof July 1, the U.S. energy industry had raised $41.90 billion of senior debt,about $12.11 billion of common equity, $5.42 billion of preferred equity, $1.97billion of subordinated debt and $300.0 million of subsidiary trust preferredin 2016. The power sector had raised $40.56 billion of capital, the midstreamsector had raised $19.06 billion and the gas utility sector had raised $2.06billion.

Ofthe total common equity raises in 2016, U.S. energy companies raised $9.10 billionfrom 24 follow-on offerings, $2.20 billion from 27 at-the-market offerings andabout $800 million from six private placement transactions.


on June30 sold of 4.65%senior unsecured notes due July 1, 2026, to repay a portion of the amountoutstanding under its revolving credit facility. The notes offer a spread tobenchmark Treasury of 320 basis points and were rated Ba1 by Moody's and BBB-by Fitch Ratings.

DeutscheBank Securities Inc., Mizuho Securities USA Inc., Barclays Capital Inc.,Citigroup Global Markets Inc., PNC Capital Markets LLC, TD Securities (USA) LLCand Wells Fargo Securities LLC acted as joint book-running managers.


on June29 sold approximately $1.25billion worth of common stock to reduce its outstanding debt underthe 2015 term loan, and the remaining to help fund its tender offers. Theamount includes the overallotment option. The shares were at $12.62 apiece in a follow-onoffering.

CreditSuisse Securities (USA) LLC, J.P. Morgan Securities LLC, Merrill Lynch PierceFenner & Smith Inc., Citigroup Global Markets Inc. and Mizuho SecuritiesUSA Inc. served as joint book-running managers.


on June 29sold $400million of 3.25% senior unsecured notes due June 30, 2026, to repayoutstanding debt under its 2013 term loan credit agreement with the remainderto repay debt outstanding under its commercial paper program dated June 8,2015. The notes offer a spread to benchmark Treasury of 180 basis points andwere rated Baa2 by Moody's and BBB+ by S&P Global Ratings.

J.P.Morgan Securities LLC, Merrill Lynch Pierce Fenner & Smith Inc., WellsFargo Securities LLC and Deutsche Bank Securities Inc. served as jointbook-running managers.


on June24 sold $140.0million worth of 10.75% series A convertible preferred stock torepay borrowings outstanding under its revolving credit facility. Theshares were issued at$12.035 apiece in a private placement.

RBCCapital Markets LLC, UBS Investment Bank and Deutsche Bank Securities Inc.served as placement agents.


subsidiaryWestern Massachusetts ElectricCo. on June 23 sold $50 million of 2.75% series H senior unsecured notes dueJune 15, 2026.


subsidiary Dominion Gas HoldingsLLC on June 17 sold $250million of 2.875% senior unsecured notes due June 15, 2023.

MorganStanley & Co. LLC acted as the sole underwriter.


Click for a template that explains how todownload SNL capital offerings data into an Excel spreadsheet.

S&P Global Ratings andS&P Global Market Intelligence are owned by S&P Global Inc.