Avangrid Offers $600M Notes To Finance U.S. Renewables Projects

Avangrid Inc. has announced the pricing of $600 million in aggregate principal amount of its 3.150% notes due Dec. 1, 2024.

The notes will be direct unsecured and unsubordinated obligations of Avangrid. The offering is expected to close on Nov. 21, 2017, subject to the satisfaction of customary closing conditions.

Avangrid expects to use the net proceeds of the offering to finance and/or refinance, in whole or in part, renewable energy projects in the U.S., including investment in 1) the construction and development of onshore and offshore wind projects and solar projects and 2) transmission and distribution networks projects that connect renewable energy sources or reduce greenhouse-gas emissions.

Specifically, Avangrid expects the net proceeds from the offering to reimburse the company for expenditures made to 1) construct a 208 MW wind farm in North Carolina that was placed in service between December 2016 and February 2017 and 2) purchase a 56 MW solar farm in Oregon that was placed in service in October 2017. To the extent the net proceeds exceed the expenditures on these projects, the remaining net proceeds will be used to finance and/or refinance additional renewable energy projects selected by Avangrid’s green financing committee.

BBVA Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Wells Fargo Securities LLC are acting as joint book-running managers of the offering. BBVA Securities Inc. is the green structuring agent.

Avangrid owns regulated utilities and electricity generation assets through two primary lines of business: Avangrid Networks and Avangrid Renewables. Avangrid Networks comprises eight electric and natural gas utilities serving approximately 3.2 million customers in New York and New England. Avangrid Renewables operates 6.6 MW of electricity capacity, primarily through wind power, across the U.S.

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