Unitil Announces Common Stock Offering
Rhea-AI Summary
Unitil Corporation (NYSE: UTL) has announced a registered offering of $65 million worth of common stock shares, with an additional option for underwriters to purchase up to $9.75 million in shares. The company plans to use the proceeds to make equity capital contributions to its regulated utility subsidiaries, repay existing debt, and for general corporate purposes.
The offering will be managed by Wells Fargo Securities, LLC and Scotia Capital (USA) Inc. as active bookrunners, with Janney Montgomery Scott LLC acting as bookrunner. Unitil, which serves approximately 109,400 electric customers and 97,600 natural gas customers in New England, will conduct the offering through a prospectus supplement under its effective registration statement on Form S-3ASR.
Positive
- Proceeds will strengthen regulated utility subsidiaries through equity capital contributions
- Debt reduction through repayment of credit agreement obligations
- Strong underwriting support from major financial institutions
Negative
- Potential dilution of existing shareholders' equity
- Stock offering subject to market conditions and may not complete
- Additional shares may be sold through underwriters' option, increasing potential dilution
Insights
Unitil's $65M stock offering will dilute existing shares but strengthen balance sheet by funding utilities and reducing debt.
Unitil Corporation (NYSE: UTL) has announced a
The proceeds will be allocated to three key areas: making equity capital contributions to regulated utility subsidiaries, repaying outstanding debt under their credit agreement, and general corporate purposes. This capital allocation strategy indicates the company is balancing infrastructure investment with deleveraging efforts.
For current shareholders, this offering will result in dilution of ownership stakes, as new shares enter the market. The magnitude of dilution depends on the offering price, which hasn't been disclosed yet. With Wells Fargo Securities and Scotia Capital serving as active bookrunners, the offering brings institutional credibility but remains subject to market conditions.
From a balance sheet perspective, the transaction will strengthen Unitil's equity position while reducing debt obligations. For regulated utilities, maintaining healthy equity levels in operating subsidiaries is crucial for regulatory compliance and supports future rate case outcomes. The debt reduction component will likely improve interest coverage ratios and potentially enhance financial flexibility.
Investors should note this offering comes within a challenging utility sector environment characterized by rising interest rates impacting capital costs and ongoing infrastructure requirements to address climate initiatives and system reliability.
HAMPTON, N.H., Aug. 14, 2025 (GLOBE NEWSWIRE) -- Unitil Corporation (NYSE: UTL) (unitil.com) (the “Company”) today announced a registered offering of
The Company’s common stock is listed on the New York Stock Exchange under the symbol “UTL.”
The Company has granted the underwriters of the offering an option to purchase up to an additional
The Company intends to use the net proceeds from the offering to (i) make equity capital contributions to its regulated utility subsidiaries, (ii) to repay indebtedness outstanding under its Second Amendment to Third Amended and Restated Credit Agreement dated January 29, 2025 among the Company, Bank of America, N.A. (as administrative agent), and the lenders named therein and (iii) for general corporate purposes.
Wells Fargo Securities, LLC and Scotia Capital (USA) Inc. are acting as active bookrunners for the offering. Janney Montgomery Scott LLC is acting as bookrunner for the offering.
The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.
The offering of common stock will be made by means of a prospectus supplement under the Company’s effective registration statement on Form S-3ASR, as filed with the Securities and Exchange Commission (“SEC”).
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor does it constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale is unlawful. The offering may be made only by means of a prospectus supplement relating to such offering and the accompanying prospectus. The preliminary prospectus supplement and the accompanying prospectus related to the offering will be available on the SEC's website at http://www.sec.gov. To obtain a copy of the prospectus supplement and related base prospectus for this offering, please contact Wells Fargo Securities, LLC, 90 South 7th Street, 5th Floor, Minneapolis, MN 55402, at (800)-645-3751 (option #5) or email a request to WFScustomerservice@wellsfargo.com.
About Unitil Corporation
Unitil Corporation provides energy for life by safely and reliably delivering electricity and natural gas in New England. We are committed to the communities we serve and to developing people, business practices, and technologies that lead to the delivery of dependable, more efficient energy. Unitil Corporation is a public utility holding company with operations in Maine, New Hampshire and Massachusetts. Together, Unitil’s operating utilities serve approximately 109,400 electric customers and 97,600 natural gas customers. For more information about our people, technologies, and community involvement please visit unitil.com.
Forward-Looking Statements
This press release contains forward-looking statements. All statements, other than statements of historical fact, included in this press release are forward-looking statements. Forward-looking statements include declarations regarding Unitil’s beliefs and current expectations. These forward-looking statements are subject to the inherent risks and uncertainties in predicting future results and conditions that could cause the actual results to differ materially from those projected in these forward-looking statements. Some, but not all, of the risks and uncertainties include the following: the ability of the parties to consummate the offering in a timely manner or at all; Unitil’s regulatory environment (including regulations relating to climate change, greenhouse gas emissions and other environmental matters); fluctuations in the supply of, the demand for, and the prices of, energy commodities and transmission and transportation capacity and Unitil’s ability to recover energy commodity costs in its rates; customers’ preferred energy sources; severe storms and Unitil’s ability to recover storm costs in its rates; general economic conditions; variations in weather; long-term global climate change; unforeseen or changing circumstances, which could adversely affect the reduction of company-wide direct greenhouse gas emissions; Unitil’s ability to retain its existing customers and attract new customers; increased competition; and other risks detailed in Unitil’s filings with the SEC. These forward-looking statements speak only as of the date they are made. Unitil undertakes no obligation, and does not intend, to update these forward-looking statements except as required by law.
For more information please contact:
Christopher Goulding – Investor Relations
Phone: 603-773-6466
Email: gouldingc@unitil.com
FAQ
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