Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Debt Issuance topic
No spam. Unsubscribe anytime.
PURA approves Southern Connecticut Gas request to issue up to $165 million in debt
Summary
The Public Utilities Regulatory Authority approved an uncontested application allowing Southern Connecticut Gas to issue up to $165 million in notes or bank financings through Dec. 31, 2027, with maturities up to 30 years and a coupon cap tied to benchmark rates.
The Public Utilities Regulatory Authority voted Wednesday to approve Southern Connecticut Gas Company's uncontested application to issue debt in the bank or private placement market, authority staff told commissioners.
Staff presented that the company asked authorization to issue notes and bank financings with maturities ranging from one to 30 years and a principal amount not to exceed $165,000,000, to be sold in the debt capital market; the period of authorization runs through Dec. 31, 2027. ‘‘The coupon rate is proposed to be a fixed or floating rate consistent with market rates for instruments of similar maturities and credit ratings with the condition that the coupon rate will not exceed 400 basis points above the benchmark US Treasury security or the secured overnight financing rate,’’ authority staff member Guy Navella said in the presentation.
Navella told the panel the authority reviewed transaction fees, terms and conditions, the coupon rate and effective yield and found no abnormal fees or terms as estimated by the company. Staff concluded the transaction was not anticipated to have an adverse effect on the company's financial flexibility, noting the company's credit ratings as triple-B-plus (S&P), Baa1 (Moody's) and A-minus (Fitch). Staff recommended approval, and commissioners moved and seconded adoption; the chair announced the decision had been adopted following the roll call.
The authority's approval authorizes Southern Connecticut Gas to proceed with issuance in the stated markets under the terms described; exact amounts, maturities and coupon rates will be set at time of issuance and will depend on market conditions.
