Unitil Announces Pricing of Common Stock Offering
Rhea-AI Summary
Unitil Corporation (NYSE: UTL) has announced the pricing of its public offering of 1,393,355 shares of common stock at $46.65 per share. The offering, expected to close on August 18, 2025, includes an option for underwriters to purchase up to an additional 209,003 shares.
The company plans to use the proceeds to make equity capital contributions to its regulated utility subsidiaries, repay existing debt under its credit agreement, and for general corporate purposes. The offering is being managed by Wells Fargo Securities, LLC and Scotia Capital (USA) Inc. as active bookrunners, with Janney Montgomery Scott LLC acting as bookrunner.
Positive
- None.
Negative
- Potential dilution for existing shareholders through issuance of 1.39M new shares
- Additional dilution possible if underwriters exercise option for 209,003 shares
Insights
Unitil's $65M equity offering dilutes shareholders but strengthens balance sheet and supports regulated utility investments.
Unitil Corporation has priced its common stock offering at
The capital raise is strategically targeted for three purposes. First, making equity contributions to regulated utility subsidiaries indicates Unitil is likely funding infrastructure investments that will grow its rate base - the capital upon which utilities earn their regulated returns. Second, reducing debt improves the company's balance sheet metrics and credit profile. Third, the allocation for "general corporate purposes" provides financial flexibility.
For regulated utilities like Unitil, maintaining an appropriate equity-to-debt ratio is crucial for regulatory compliance and favorable treatment in rate cases. Equity offerings like this help utilities maintain their capital structure ratios while funding necessary infrastructure investments. This offering should strengthen Unitil's financial position as it serves its approximately 109,400 electric and 97,600 natural gas customers across New England.
The stock offering reflects standard utility financing practices, with established financial institutions (Wells Fargo Securities and Scotia Capital) serving as active bookrunners. The timing suggests Unitil is positioning itself for future capital expenditures in its regulated business, potentially related to grid modernization, gas system improvements, or clean energy initiatives typical in the Northeast regulatory environment.
HAMPTON, N.H., Aug. 14, 2025 (GLOBE NEWSWIRE) -- Unitil Corporation (NYSE: UTL) (unitil.com) (the “Company”) today announced that it has priced its previously announced public offering of 1,393,355 shares of its common stock at a price of
The Company has granted the underwriters of the offering an option to purchase up to an additional 209,003 shares of common stock at the public offering price, less underwriting discounts and commissions.
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 offering of common stock is being 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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