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Published on 12/3/2014 in the Prospect News Investment Grade Daily.

New Issue: Dominion Gas prices $1.4 billion of senior notes in three parts

By Aleesia Forni

Virginia Beach, Dec. 3 – Dominion Gas Holdings LLC priced a $1.4 billion three-tranche offering of senior notes (A2/A-/A-) during Wednesday’s session, according to a market source and a FWP filed with the Securities and Exchange Commission.

There was $450 million of 2.5% notes due 2019 sold at 99.962 to yield 2.508%.

The notes sold with a spread of 90 basis points over Treasuries.

A $450 million tranche 3.6% 10-year bonds priced at 99.724 to yield 3.633%, or Treasuries plus 135 bps.

Finally, $500 million of 4.6% notes due 2044 sold at 99.37 to yield 4.639%, or with a spread of Treasuries plus 165 bps.

Goldman Sachs & Co., RBS Securities Inc., BNP Paribas Securities Corp. and Scotia Capital (USA) Inc. were the bookrunners.

Dominion Gas plans to use proceeds for general corporate purposes and to repay intercompany debt owed to Dominion Resources Inc.

Dominion Gas is a wholly owned subsidiary of Richmond, Va.-based energy producer and transporter Dominion Resources.

Issuer:Dominion Gas Holdings LLC
Issue:Senior notes
Amount:$1.4 billion
Bookrunners:Goldman Sachs & Co., RBS Securities Inc., BNP Paribas Securities Corp., Scotia Capital (USA) Inc.
Trade date:Dec. 3
Settlement date:Dec. 8
Ratings:Moody’s: A2
Standard & Poor’s: A-
Fitch: A-
Distribution:SEC-registered
Five-year notes
Amount:$450 million
Maturity:Dec. 15, 2019
Coupon:2.5%
Price:99.962
Yield:2.508%
Spread:Treasuries plus 90 bps
Price talk:100 bps to 105 bps
Make-whole call:Treasuries plus 15 bps prior to Nov. 15, 2019, then callable at par
10-year notes
Amount:$450 million
Maturity:Dec. 15, 2024
Coupon:3.6%
Price:99.724
Yield:3.633%
Spread:Treasuries plus 135 bps
Price talk:145 bps area
Make-whole call:Treasuries plus 20 bps prior to Sept. 15, 2024, then callable at par
30-year bonds
Amount:$500 million
Maturity:Dec. 15, 2044
Coupon:4.6%
Price:99.37
Yield:4.639%
Spread:Treasuries plus 165 bps
Price talk:175 bps area
Make-whole call:Treasuries plus 25 bps prior to June 15, 2044, then callable at par

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