By Andrea Heisinger
Omaha, March 25 - Questar Gas Co. priced $150 million of notes (A3/A-) in two tranches, according to an FWP filing with the Securities and Exchange Commission.
The $50 million of 6.3% 10-year notes priced at 99.94 to yield 6.308%, or Treasuries plus 275 basis points. They have a make-whole call of Treasuries plus 45 bps.
The $100 million of 7.2% 30-year notes priced at 99.937 to yield 7.205%, or Treasuries plus 285 bps. They have a make-whole call of Treasuries plus 45 bps.
Barclays Capital Inc. and J.P. Morgan Securities Inc. were bookrunners.
Co-managers were Lazard Capital Markets LLC, Greenwich Capital Markets Inc. and Wachovia Capital Markets LLC.
Proceeds will be used to repay $50 million in long-term bank loans with the remainder used to reduce intercompany short-term debt owed to Questar.
The natural gas company and subsidiary of Questar Corp. is based in Salt Lake City.
| Issuer: | Questar Gas Co.
|
| Issue: | Notes
|
| Amount: | $150 million
|
| Bookrunners: | Barclays Capital Inc., J.P. Morgan Securities Inc.
|
| Co-managers: | Lazard Capital Markets LLC, Greenwich Capital Markets Inc. and Wachovia Capital Markets LLC
|
| Trade date: | March 24
|
| Settlement date: | March 27
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
|
|
| 10-year tranche
|
| Amount: | $50 million
|
| Maturity: | April 1, 2018
|
| Coupon: | 6.3%
|
| Price: | 99.94
|
| Yield: | 6.308%
|
| Spread: | Treasuries plus 275 bps
|
| Call: | Make-whole at Treasuries plus 45 bps
|
|
|
| 30-year tranche
|
| Amount: | $100 million
|
| Maturity: | April 1, 2038
|
| Coupon: | 7.2%
|
| Price: | 99.937
|
| Yield: | 7.205%
|
| Spread: | Treasuries plus 285 bps
|
| Call: | Make-whole at Treasuries plus 45 bps
|
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