Consolidated Edison, Inc. (NYSE:ED), a major energy company based in New York, has entered into an underwriting agreement for the sale of $1.45 billion in debentures, according to a recent 8-K filing with the Securities and Exchange Commission. The agreement, dated November 14, 2024, involves the sale of three series of debentures through Barclays (LON:BARC) Capital Inc., BofA Securities, Inc., Mizuho (NYSE:MFG) Securities USA LLC, and Scotia Capital (USA) Inc., acting as representatives of the underwriters.
The offering includes $350 million of Floating Rate Debentures, Series 2024 C due 2027, $450 million of 5.125% Debentures, Series 2024 D due 2035, and $650 million of 5.50% Debentures, Series 2024 E due 2055. These debt instruments were registered under the Securities Act of 1933 and are part of a Registration Statement on Form S-3 that became effective on August 1, 2024.
The sale of the debentures will provide Consolidated Edison with fresh capital, potentially for corporate expenses, infrastructure investments, or other operational needs typical for large utility companies. The company, which operates mainly in the New York metropolitan area, is known for providing electric, gas, and steam service.
The filing also included exhibits such as the form of each series of the debentures and the opinion of Deneen Donnley, Senior Vice President and General Counsel of Consolidated Edison Company of New York, Inc., relating to the legality of the debentures.
This report is based on a press release statement.
In other recent news, Consolidated Edison reported significant developments. The company announced new rate plans for 2025-2027, proposed by its subsidiary, Orange and Rockland Utilities, pending approval by the New York State Public Service Commission. The proposal outlines changes to electric and gas rates, potential incentives for energy efficiency, and plans for capital investments over the three-year period.
Additionally, Consolidated Edison plans to redeem $224.6 million in tax-exempt debt, originally issued by a subsidiary, Consolidated Edison Company of New York. This redemption is scheduled for November 2024, as part of the company's debt management strategy.
In terms of earnings, the company's Q2 2024 report showed an adjusted EPS of $0.59 and an operating revenue of $3.22 billion. Despite an increase in operations and maintenance expenses, the company has maintained its full-year 2024 EPS guidance, projecting earnings between $5.20 and $5.40.
Analyst firms have also updated their assessments of the company. Guggenheim maintained a Neutral rating but increased the stock's price target to $99. BofA Securities raised its price target from $97.00 to $109.00, maintaining a Buy rating. A Citi analyst upgraded the stock rating from Neutral to Buy, while Jefferies initiated coverage with a Hold rating.
Finally, Kirkland B. Andrews was appointed as the new CFO of Consolidated Edison, and the New York State Department of Public Service showed support for rate cases for the company's subsidiary, Orange & Rockland.
InvestingPro Insights
Consolidated Edison's recent $1.45 billion debenture sale aligns with its strong financial position and commitment to shareholder value. According to InvestingPro data, the company boasts a market capitalization of $33.48 billion and a P/E ratio of 18.07, suggesting a reasonable valuation for a utility company.
InvestingPro Tips highlight Consolidated Edison's impressive dividend history, having raised its dividend for 50 consecutive years and maintained payments for 54 years. This track record of consistent dividend growth complements the company's recent debt issuance, potentially indicating a balanced approach to capital allocation and shareholder returns.
The company's revenue for the last twelve months stands at $15.03 billion, with a healthy gross profit margin of 53.29%. These figures, combined with the recent debenture sale, suggest that Consolidated Edison is well-positioned to manage its financial obligations and continue its infrastructure investments.
For investors seeking more comprehensive analysis, InvestingPro offers 7 additional tips for Consolidated Edison, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.