National Fuel Gas selling $350 million 10-year notes Tuesday

By Andrea Heisinger

New York, Feb. 12 - National Fuel Gas Co. is planning a $350 million sale of 10-year notes (Baa1/BBB/BBB+) on Tuesday, according to an informed source and a filing with the Securities and Exchange Commission.

There were price whispers in the low 200 basis points area, the source said. The amount of the offering could change as there is not a do-not-grow provision on it, they added.

"If the pricing is right, we could see it change," the source said in reference to the size.

The notes will have a make-whole call until three months prior to maturity and then can be redeemed at par. There is a change-of-control put at 101%.

J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC are the active bookrunners. HSBC Securities (USA) Inc. is a passive bookrunner.

Proceeds will be used for general corporate purposes, including refunding $250 million of 5.25% notes due in March and to reduce short-term debt.

National Fuel was last in the U.S. bond market with a $500 million offering of 4.9% 10-year notes priced at 295 bps over Treasuries on Nov. 28, 2011.

The diversified energy company is based in Williamsville, N.Y.

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