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LONG-TERM DEBT
3 Months Ended
Mar. 31, 2012
Notes To Consolidated Financial Statements [Abstract]  
Long-term Debt [Text Block]

8.       LONG-TERM DEBT

 

On March 22, 2012, NU parent issued $300 million of floating rate Series D Senior Notes with a maturity date of September 20, 2013. The notes have a coupon rate based on the three-month LIBOR rate plus a credit spread of 0.75 percent and will reset quarterly. The notes had an initial interest rate of 1.22 percent as of March 31, 2012. The proceeds, net of issuance expenses, were used to repay at maturity the NU parent $263 million Series A Senior Notes that matured on April 1, 2012, to repay short-term borrowings outstanding under the NU parent Credit Agreement and for other general corporate purposes. The indenture under which the bonds were issued requires NU to comply with certain covenants as are customarily included in such indentures.

 

NU, including CL&P, PSNH and WMECO, was in compliance with all its debt covenants as of March 31, 2012.