Berlin-based Northeast Utilities announced today plans for a public offering of 15.5 million shares of common stock to finance ongoing upgrades to its New England power distribution network.
NU also said Standard & Poor’s will, starting with the close of today’s trading, include the utility in the S&P 500 index. NU replaces Tyco International, which is redomiciling in Europe.
The parent of Connecticut Light & Power and Yankee Gas Co. said the offering will be its biggest since NU issued 23 million shares in December 2005.
Spokesman Jeffrey Kotkin said issuing equity, coupled with NU’s recent debt offerings, provide financing for improvements to its distribution infrastructure without overleveraging the company.
NU said that it expects to grant its underwriters a 30-day option to purchase from NU an additional 2,325,000 shares.
NU currently has approximately 156 million common shares outstanding.
J.P. Morgan Securities Inc. and Barclays Capital Inc. are co-managers for the offering.
At 11 a.m., NU traded at $19.98, down 1 cent, or 0.05 percent.
