Gas Natural's Ohio subsidiaries, Great Plains Natural to place notes totaling $20 million

By Lisa Kerner

Charlotte, N.C., Nov. 2 - Gas Natural Inc. subsidiaries Northeast Ohio Natural Gas Corp., Orwell Natural Gas Corp. and Brainard Gas Corp. will place $17.7 million of senior secured guaranteed notes due June 1, 2017 with Sun Life Assurance Co.

The notes will be priced four days after the receipt of regulatory approvals. Interest on the notes will be compounded semiannually and payable monthly.

Proceeds will be use to refinance $7.8 million of maturing Ohio utility debt and other existing debt and for general corporate purposes, Gas Natural said.

The make-whole call is at Treasuries plus 50 bps.

The placement is expected to close by late November.

At closing, subsidiary Great Plains Natural Gas Co. will issue a $2.3 million three-year floating-rate senior secured guaranteed note also to Sun Life.

Gas Natural is a Mentor, Ohio-based natural gas company.

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