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Energy capital raises in 2016: Power sector raises up 30% YOY

This Data Dispatch will be updated throughout 2016 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 $120.13 billion as of Dec. 16, according to S&P Global Market Intelligence data. The total comprises $84.33 billion of senior debt, $22.85 billion of common equity, $6.85 billion of preferred equity, $5.80 billion of subordinated debt and $300 million of trust preferred in 2016.

By sector, power companies raised $80.82 billion of capital, midstream companies raised $33.13 billion and gas utilities raised $5.89 billion. Of the total common equity raises in 2016, energy companies raised $15.08 billion from 42 follow-on offerings, $4.40 billion from 77 at-the-market offerings, about $3.05 billion from 17 private placement transactions and $320 million from an IPO.

* Avista Corp. on Dec. 15 sold $175 million of its 3.54% series 60 first mortgage bonds due Dec. 1, 2051, to repay a $70 million term loan and to repay a portion of the borrowings outstanding under its $400.0 million committed line of credit.

* Dominion Resources Inc. subsidiary Questar Gas Co. on Dec. 15 sold $100 million worth of senior unsecured notes to repay existing indebtedness and for general corporate purposes. The notes consisted of $50 million of 3.62% series A notes due Dec 1, 2046, and $50 million of 3.67% series B notes due Dec 1, 2051. MUFG Securities Americas Inc., Mizuho Securities USA Inc. and J.P. Morgan Securities LLC acted as placement agents.

* Hawaiian Electric Industries Inc. subsidiary Hawaiian Electric Co. Inc. on Dec. 15 sold $40 million of 4.54% series 2016A senior unsecured notes due Dec. 1, 2046, to finance CapEx, including the repayment of short-term borrowings and/or to reimburse funds used for such purposes.

* FirstEnergy Corp. on Dec. 13 completed a private placement of $500 million worth of common shares. The company contributed 16,097,875 shares to its qualified pension trust, the FirstEnergy System Master Retirement Trust, to satisfy certain future funding obligations of the company and its subsidiaries to the trust.

* Otter Tail Corp. on Dec. 13 sold $80 million of 3.55% guaranteed senior notes due Dec. 15, 2026, to repay existing debt, including the remaining $52.3 million of its 9% senior notes due Dec. 15 and for general corporate purposes. Merrill Lynch Pierce Fenner & Smith Inc. and U.S. Bancorp Investments Inc. were the placement agents.

* Southern Co. on Dec. 5 sold $550 million of variable rate series 2016B junior subordinated notes due March 15, 2057, for general corporate purposes. Goldman Sachs & Co., J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and Wells Fargo Securities LLC acted as joint book-running managers.

* Exelon Corp. subsidiary Delmarva Power & Light Co. on Dec. 5 sold $175 million of its 4.15% first mortgage bonds due May 15, 2045, to repay upon maturity $100 million of the maturing notes, to repay its commercial paper and for general corporate purpose. BNP Paribas Securities Corp., MUFG Securities Americas Inc. and CIBC World Markets Corp. served as joint book-running managers.

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