CT Light & Power Reports New Direct Financial Obligation
Ticker: CNLHN · Form: 8-K · Filed: Jan 23, 2024 · CIK: 23426
Complexity: simple
Sentiment: neutral
Topics: debt, financial-obligation, utility
TL;DR
**CL&P just took on new debt, watch for balance sheet impact.**
AI Summary
On January 23, 2024, The Connecticut Light and Power Company (CL&P) filed an 8-K to report the creation of a direct financial obligation. This filing indicates CL&P has taken on new debt or a similar financial commitment, which could impact its financial health and future earnings. For investors, this means CL&P's balance sheet now carries additional liabilities, potentially affecting its credit rating or ability to fund future projects, which could influence stock valuation.
Why It Matters
This filing signals that Connecticut Light and Power has incurred new debt, which could affect its financial leverage and future profitability, potentially impacting shareholder returns.
Risk Assessment
Risk Level: medium — The creation of a direct financial obligation increases the company's debt burden, which can elevate financial risk if not managed effectively.
Analyst Insight
A smart investor would monitor The Connecticut Light and Power Company's upcoming financial statements for details on the size and terms of this new financial obligation to assess its impact on the company's leverage and cash flow.
Key Players & Entities
- THE CONNECTICUT LIGHT AND POWER COMPANY (company) — the registrant filing the 8-K
- January 23, 2024 (date) — date of the earliest event reported and filing date
- 0-00404 (other) — Commission File Number for the registrant
- 06-0303850 (other) — I.R.S. Employer Identification Number for the registrant
Forward-Looking Statements
- The company's debt-to-equity ratio will increase in its next financial report. (THE CONNECTICUT LIGHT AND POWER COMPANY) — medium confidence, target: Q1 2024 Earnings Report
- Future interest expenses for CL&P will rise due to this new obligation. (THE CONNECTICUT LIGHT AND POWER COMPANY) — medium confidence, target: Next 12 months
FAQ
What is the primary purpose of this 8-K filing by The Connecticut Light and Power Company?
The primary purpose of this 8-K filing is to report the 'Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant' as of January 23, 2024.
What is the exact name of the registrant as specified in its charter?
The exact name of the registrant as specified in its charter is THE CONNECTICUT LIGHT AND POWER COMPANY.
What is the date of the earliest event reported in this filing?
The date of the earliest event reported in this filing is January 23, 2024.
What is the business address of The Connecticut Light and Power Company?
The business address of The Connecticut Light and Power Company is 107 Selden Street, Berlin, CT 06037-1616.
Is The Connecticut Light and Power Company an emerging growth company according to this filing?
The filing does not indicate that The Connecticut Light and Power Company is an emerging growth company; the relevant box is not checked.
Filing Stats: 726 words · 3 min read · ~2 pages · Grade level 10.6 · Accepted 2024-01-23 16:04:39
Key Financial Figures
- $350,000,000 — ersource Energy (the "Company"), issued $350,000,000 aggregate principal amount of its 4.65%
Filing Documents
- tm243789d1_8k.htm (8-K) — 29KB
- tm243789d1_ex1-1.htm (EX-1.1) — 170KB
- tm243789d1_ex4-1.htm (EX-4.1) — 375KB
- tm243789d1_ex5-1.htm (EX-5.1) — 10KB
- tm243789d1_ex5-2.htm (EX-5.2) — 11KB
- tm243789d1_ex5-1img001.jpg (GRAPHIC) — 3KB
- tm243789d1_ex5-2img001.jpg (GRAPHIC) — 4KB
- 0001104659-24-005872.txt ( ) — 852KB
- es-20240123.xsd (EX-101.SCH) — 3KB
- es-20240123_lab.xml (EX-101.LAB) — 33KB
- es-20240123_pre.xml (EX-101.PRE) — 22KB
- tm243789d1_8k_htm.xml (XML) — 3KB
03
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. On January 23, 2024, The Connecticut Light and Power Company, doing business as Eversource Energy (the "Company"), issued $350,000,000 aggregate principal amount of its 4.65% First and Refunding Mortgage Bonds, 2024 Series A, due 2029 (the "Bonds"), pursuant to an Underwriting Agreement, dated January 16, 2024, among BofA Securities, Inc., BNY Mellon Capital Markets, LLC, Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, TD Securities (USA) LLC and Wells Fargo Securities, LLC, as representatives of the underwriters named therein, and the Company (the "Underwriting Agreement"). The Bonds were issued under a Supplemental Indenture, dated as of January 1, 2024, between the Company and Deutsche Bank Trust Company Americas, as Trustee (the "Supplemental Indenture"), supplementing the Indenture of Mortgage and Deed of Trust between the Company and Deutsche Bank Trust Company Americas (formerly known as Bankers Trust Company), dated as of May 1, 1921, as amended and supplemented, including as amended and restated as of April 7, 2005. A copy of the Supplemental Indenture is filed herewith as Exhibit 4.1. Section 9
Financial Statements and Exhibits
Financial Statements and Exhibits
Financial Statements and Exhibits
Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Description 1.1 Underwriting Agreement, dated January 16, 2024, between The Connecticut Light and Power Company, doing business as Eversource Energy, and BofA Securities, Inc., BNY Mellon Capital Markets, LLC, Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, TD Securities (USA) LLC and Wells Fargo Securities, LLC, as representatives of the several Underwriters named therein. 4.1 Supplemental Indenture, dated as of January 1, 2024, between the Company and Deutsche Bank Trust Company Americas, as Trustee. 4.2 Form of 4.65% First and Refunding Mortgage Bonds, 2024 Series A, due 2029 (included as Schedule A to the Supplemental Indenture filed herewith as Exhibit 4.1). 5.1 Legal opinion of Ropes & Gray LLP relating to the validity of the Bonds. 5.2 Legal opinion of Kerry Tomasevich, Esq. relating to the validity of the Bonds. 23.1 Consent of Ropes & Gray LLP (included in Exhibit 5.1). 23.2 Consent of Kerry Tomasevich, Esq. (included in Exhibit 5.2). 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. THE CONNECTICUT LIGHT AND POWER COMPANY (Registrant) January 23, 2024 By: /s/ Emilie G. O'Neil Emilie G. O'Neil Assistant Treasurer-Corporate Finance and Cash Management