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
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| Amount: | $500 million
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| Maturity: | Dec. 15, 2044
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| Coupon: | 4.6%
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| 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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