Eversource 2001 Annual Report Download - page 35

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Notes to Consolidated Statements of Capitalization
(a) On January 2, 2001, NU modified its forward share purchase
arrangements for NU common shares. To initially effect these
arrangements, the financial institutions (counterparties) pur-
chased approximately 10.1 million NU common shares on the
open market in December 1999 and January 2000, in a total
aggregate amount of $215 million, at an average price of $21.26.
The counterparties maintained ownership of the shares until the
transactions were settled. NU accrued charges on the total aggre-
gate amount at LIBOR plus an agreed upon percentage per
annum, until the transactions were settled. These transactions
could have been settled in cash or NU common shares at the com-
pany’s discretion. NU repurchased the shares from the counter-
parties in April 2001 with the proceeds from restructuring. This
amount has been classified as temporary equity from stock for-
ward on NU’s consolidated balance sheets at December 31, 2000.
(b) Long-term debt maturities and cash sinking fund require-
ments, excluding fees and interest due for spent nuclear fuel dis-
posal costs, on debt outstanding at December 31, 2001, for the
years 2002 through 2006 are $50.5 million, $318.6 million,
$58.5 million, $86.6 million, and $24.3 million, respectively.
Essentially all utility plant of CL&P, PSNH, NGC, and Yan-
kee is subject to the liens of each company’s respective first mort-
gage bond indenture.
CL&P has $315.5 million of pollution control notes secured
by second mortgage liens on transmission assets, junior to the
liens of their first mortgage bond indentures.
CL&P has $62 million of tax-exempt PCRBs with bond insur-
ance secured by the first mortgage bonds and a liquidity facility.
For financial reporting purposes, these first mortgage bonds
would not be considered outstanding unless CL&P failed to meet
its obligations under the PCRBs.
PSNH entered into financing arrangements with the Business
Finance Authority (BFA) of the state of New Hampshire. Pur-
suant to which the BFA issued five series of PCRBs and loaned the
proceeds to PSNH. At December 31, 2001 and 2000, $407.3
million of the PCRBs were outstanding. PSNH’s obligation to
repay each series of PCRBs is secured by bond insurance and the
first mortgage bonds. Each such series of first mortgage bonds
contains similar terms and provisions as the applicable series of
PCRBs. For financial reporting purposes, these first mortgage
bonds would not be considered outstanding unless PSNH failed
to meet its obligations under the PCRBs.
(c) The average effective interest rate on the variable-rate pollu-
tion control notes ranged from 1.2 percent to 3.8 percent for
2001 and 3.2 percent to 6.8 percent for 2000.
33
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