PSNH Funding, a vehicle of P.S. Co. of New Hampshire, is readying a second stranded cost securitization, estimated at approximately $50 million, a company official confirmed.
Timing for the offering is expected in the first quarter and should progress quickly following regulatory approval of the recently filed shelf registration. As was the case with its most recent stranded cost deal in April, Citigroup/Salomon Smith Barney will lead-manage the offering.
The company, a unit Northeast Utilities, is issuing the bonds to buy out outstanding independent power provider (IPP) contracts, the official added. Also, there is potential for fellow Northeast Utility operating arm Connecticut Light & Power to securitize a similar contract buyout.
The PSNH Funding 2001-1 deal priced in April, via a syndicate consisting of joint leads Salomon and Bear Stearns and co-managers Goldman, Sachs, Merrill Lynch, Morgan Stanley, Banc One, Barclays Capital, Fleet Securities, UBS Warburg.