By Lisa Kerner
Charlotte, N.C., Dec. 24 - Questar Gas Co. completed its private placement of $150 million of notes in two tranches on Dec. 20, according to an 8-K filing with the Securities and Exchange Commission.
The notes were issued as:
• $90 million of 4.78% senior notes, series A, due Dec. 1, 2043; and
• $60 million of 4.83% senior notes, series B, due Dec. 1, 2048.
The company announced the issue in July.
Proceeds will be used to refinance debt and for general corporate purposes.
The notes have a make-whole call at Treasuries plus 50 basis points.
Questar may prepay at any time all or part of the notes in an amount not less than 5% of the total principal amount of the notes. The payout would be par plus a make-whole amount, the filing stated.
Under the note purchase agreement, Questar will not permit, as of the end of each fiscal quarter, its consolidated debt to exceed 70% of its consolidated total capitalization or its priority debt to exceed 15% of consolidated total assets of the company and its restricted subsidiaries.
Purchasers include Thrivent Financial for Lutherans; the Northwestern Mutual Life Insurance Co.; John Hancock Life Insurance Co.; John Hancock Life Insurance Co. of New York; John Hancock Life & Health Insurance Co.; United of Omaha Life Insurance Co.; Mutual of Omaha Insurance Co.; New York Life Insurance and Annuity Corp.; New York Life Insurance Co.; West Coast Life Insurance Co. (WCL); Principal Life Insurance Co.; the State Life Insurance Co.; Pioneer Mutual Life Insurance Co.; Country Life Insurance Co.; Country Mutual Insurance Co. and CMFG Life Insurance Co.
Questar is a public utility that distributes natural gas and is located in Salt Lake City.
| Issuer: | Questar Gas Co.
|
| Issue: | Notes
|
| Amount: | $150 million
|
| Pricing date: | July 18
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| Settlement: | Dec. 20
|
| Distribution: | Private placement
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| Purchasers: | Thrivent Financial for Lutherans; the Northwestern Mutual Life Insurance Co.; John Hancock Life Insurance Co.; John Hancock Life Insurance Co. of New York; John Hancock Life & Health Insurance Co.; United of Omaha Life Insurance Co.; Mutual of Omaha Insurance Co.; New York Life Insurance and Annuity Corp.; New York Life Insurance Co.; West Coast Life Insurance Co. (WCL); Principal Life Insurance Co.; the State Life Insurance Co.; Pioneer Mutual Life Insurance Co.; Country Life Insurance Co.; Country Mutual Insurance Co. and CMFG Life Insurance Co.
|
|
|
| 30-year notes
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| Amount: | $90 million
|
| Coupon: | 4.78%
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| Maturity: | Dec. 1, 2043
|
|
|
| 35-year notes
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| Amount: | $60 million
|
| Coupon: | 4.83%
|
| Maturity: | Dec. 1, 2048
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