On October 14, 2026, Unitil Corporation announced the issuance of $60 million in long-term debt through its subsidiary, Unitil Energy Systems, Inc. The company entered into a Bond Purchase Agreement with U.S. Bank Trust Company, National Association, serving as trustee, and a group of institutional investors including Metropolitan Life Insurance Company, State Farm Life Insurance Company, and others.
The offering consisted of two series of First Mortgage Bonds:
- $30,000,000 of Series T Bonds: Issued at a 5.72% interest rate, due October 14, 2036.
- $30,000,000 of Series U Bonds: Issued at a 5.87% interest rate, due October 14, 2038.
Unitil Energy plans to use the net proceeds from this financing to refinance existing debt on a consolidated basis and for general corporate purposes. The bonds were offered to institutional investors pursuant to an exemption from registration requirements under Section 4(a)(2) of the Securities Act of 1933.
The bond documents include a "fall-away" structure regarding collateral. Upon the release of all collateral securing other bonds of Unitil Energy, subject to certain conditions, the interest rates on the Series T and Series U bonds will increase to 5.82% and 5.97%, respectively.
