S&P: Williams tender expected

Standard & Poor's said Monday that it views The Williams Cos. Inc.'s (B+/negative/--) announced cash tender offer for $1.1 billion in notes as a credit positive. However, the tender offer falls within S&P's expectations that Williams would use excess cash available to prepay debt maturities.

Therefore, the rating remains unchanged.

S&P said Williams is purchasing the notes to enhance its balance sheet by decreasing debt and reducing annual interest expense. Williams is offering to purchase the approximately $114 million outstanding principal amount of its 6.625% notes due Nov. 15, 2004. In addition, Williams is offering to purchase up to $1.0 billion of certain series of notes maturing in 2006 through 2009.

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