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Eversource Prices 6M Shares, to Fund Buyout With Proceeds
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Eversource Energy (ES - Free Report) announced that it has priced public offering of 6 million equity shares at $86.26 per share. The offering will close on Jun 15, 2020. It grants the underwriters a 30-day option to purchase up to 900,000 additional Eversource Energy common shares. At the end of first-quarter 2020, the company had 332.9-million diluted shares outstanding.
Infusion of additional equity in the capital mix will allow Eversource to lower the total debt-to-capital level, which was 52.2% as of Mar 31, 2020. As it is, the current debt-to-capital level of the company is lower than the industry average of 54.5%.
Given the current volatile market conditions, companies might not want to add new debts in the total capital mix, as it will increase their interest expenses. Another company ONEOK (OKE - Free Report) recently priced its public offering of 26-million shares and intends to utilize the net proceeds from the same for general corporate purposes, which may include the repayment of existing indebtedness and the funding of capital expenditures.
Utilization of the Proceeds
Eversource intends to utilize the proceeds from the equity issuance to fund a portion of the $1.1-billion acquisition of Columbia Gas of Massachusetts from NiSource (NI - Free Report) . Eversource expects to complete the acquisition by the end of third-quarter 2020, subject to regulatory approvals.
This acquisition will be accretive to Eversource’s earnings. The company already has resources and facilities located in close proximity to Columbia Gas of Massachusetts' customer homes and businesses. With Columbia Gas of Massachusetts, Eversource will be able to serve 626,000 natural gas customers in Massachusetts alone across more than 60 communities.
Price Performance
Its shares have outperformed the industry in the past 12 months.
NextEra Energy (NEE - Free Report) delivered positive earnings surprise of 2.4% in the last four quarters. The Zacks Consensus Estimate for 2020 earnings has moved up 0.1% in the past 90 days.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Eversource Prices 6M Shares, to Fund Buyout With Proceeds
Eversource Energy (ES - Free Report) announced that it has priced public offering of 6 million equity shares at $86.26 per share. The offering will close on Jun 15, 2020. It grants the underwriters a 30-day option to purchase up to 900,000 additional Eversource Energy common shares. At the end of first-quarter 2020, the company had 332.9-million diluted shares outstanding.
Infusion of additional equity in the capital mix will allow Eversource to lower the total debt-to-capital level, which was 52.2% as of Mar 31, 2020. As it is, the current debt-to-capital level of the company is lower than the industry average of 54.5%.
Given the current volatile market conditions, companies might not want to add new debts in the total capital mix, as it will increase their interest expenses. Another company ONEOK (OKE - Free Report) recently priced its public offering of 26-million shares and intends to utilize the net proceeds from the same for general corporate purposes, which may include the repayment of existing indebtedness and the funding of capital expenditures.
Utilization of the Proceeds
Eversource intends to utilize the proceeds from the equity issuance to fund a portion of the $1.1-billion acquisition of Columbia Gas of Massachusetts from NiSource (NI - Free Report) . Eversource expects to complete the acquisition by the end of third-quarter 2020, subject to regulatory approvals.
This acquisition will be accretive to Eversource’s earnings. The company already has resources and facilities located in close proximity to Columbia Gas of Massachusetts' customer homes and businesses. With Columbia Gas of Massachusetts, Eversource will be able to serve 626,000 natural gas customers in Massachusetts alone across more than 60 communities.
Price Performance
Its shares have outperformed the industry in the past 12 months.
Zacks Rank & A Key Pick
Eversource currently has a Zacks Rank #3 (Hold). A better-ranked stock in the same industry is NextEra Energy (NEE - Free Report) , carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NextEra Energy (NEE - Free Report) delivered positive earnings surprise of 2.4% in the last four quarters. The Zacks Consensus Estimate for 2020 earnings has moved up 0.1% in the past 90 days.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>