By Lisa Kerner
Charlotte, N.C., Nov. 7 - Questar Gas Co. issued $150 million of its senior notes in a private placement on Nov. 2, according to a form 8-K filing with the Securities and Exchange Commission.
The notes were issued as follows:
• $40 million of 2.98% series A notes due Dec. 1, 2024; and
• $110 million of 3.28% series B notes due Dec. 1, 2027.
Proceeds will be used to refinance debt and for general corporate purposes.
Questar may prepay at any time all, or from time to time any part of, the notes in an amount not less than 5% of the total principal amount the notes then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, plus a make-whole amount.
The notes have a make-whole call at Treasuries plus 50 basis points.
Under the company's note purchase agreement, Questar must not permit its consolidated debt to exceed 70% of its consolidated total capitalization as of the end of each fiscal quarter.
In addition, Questar's priority debt may not exceed 15% of consolidated total assets of the company and its restricted subsidiaries.
Purchasers include the Northwestern Mutual Life Insurance Co., State Farm Life Insurance Co., Thrivent Financial for Lutherans, AXA Equitable Life Insurance Co., MONY Life Insurance Co., Principal Life Insurance Co., American United Life Insurance Co., the State Life Insurance Co., United of Omaha Life Insurance Co., the Union Central Life Insurance Co., Ameritas Life Insurance Corp., Acacia Life Insurance Co., Beneficial Life Insurance Co., American Equity Investment Life Insurance Co., Great-West Life & Annuity Insurance Co. of New York, and Country Life Insurance Co.
Questar, a public utility, distributes natural gas and is located in Salt Lake City.
| Issuer: | Questar Gas Co.
|
| Issue: | Senior secured notes
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| Amount: | $150 million
|
| Call: | Make-whole at Treasuries plus 50 bps
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| Pricing date: | Nov. 2
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| Distribution: | Private placement
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| Purchasers: | The Northwestern Mutual Life Insurance Co., State Farm Life Insurance Co., Thrivent Financial for Lutherans, AXA Equitable Life Insurance Co., MONY Life Insurance Co., Principal Life Insurance Co., American United Life Insurance Co., the State Life Insurance Co., United of Omaha Life Insurance Co., the Union Central Life Insurance Co., Ameritas Life Insurance Corp., Acacia Life Insurance Co., Beneficial Life Insurance Co., American Equity Investment Life Insurance Co., Great-West Life & Annuity Insurance Co. of New York, and Country Life Insurance Co.
|
|
|
| Series A
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| Amount: | $40 million
|
| Maturity: | Dec. 1, 2024
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| Coupon: | 2.98%
|
|
|
| Series B
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| Amount: | $110 million
|
| Maturity: | Dec. 1, 2027
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| Coupon: | 3.28%
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