National Grid locks in 30-year debt securities at low rates for KEDNY
On March 9, National Grid successfully issued $650 million of long-term debt securities for KEDNY, locking in the benefits of low-cost long-term debt at a fixed rate of 4.273% on behalf of customers over the next 30 years.
Proceeds from the debt issuance will provide funding of projected gas infrastructure investments of more than $1.9 billion over the next 3 years and refinance existing debt. As short-term rates have increased, and longer term rates have remained attractive, the Company is also refinancing $230 million of variable rate debt to lock in longer term fixed rates as part of this transaction.
This is another major milestone in the Company’s financing strategy to implement a comprehensive plan to provide long-term savings to customers. It follows the issuances of $1 billion in long-term debt for KEDNY in March 2016 and $700 million for KEDLI in August of 2016 at very favorable interest rates. Combined, these provided nearly $200 million in savings to customers.