By Devika Patel and Cristal Cody
Knoxville, Tenn., Jan. 12 – Atmos Energy Corp. priced a $200 million add-on to its 2.625% senior notes due Sept. 15, 2029 (A1/A-) at 68 basis points over Treasuries on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The notes were sold at 101.33 to yield 2.428%.
Initial price talk was in the Treasuries plus 85 bps area, according to a market source.
The company sold $300 million of the 2.625% notes due 2029 on Oct. 2, 2019.
BNP Paribas Securities Corp., CIBC World Markets Corp., Credit Agricole Securities (USA) Inc. and U.S. Bancorp Investments, Inc. were the bookrunners.
Proceeds from the add-on offering will be used to repay the company’s $200 million term loan prior to its maturity on April 9, 2022. The effective rate of the term loan is 1.465%.
Atmos Energy is a natural gas distributor and pipeline company based in Dallas.
| Issuer: | Atmos Energy Corp.
|
| Amount: | $200 million reopening
|
| Issue: | Senior notes
|
| Maturity: | Sept. 15, 2029
|
| Bookrunners: | BNP Paribas Securities Corp., CIBC World Markets Corp., Credit Agricole Securities (USA) Inc. and U.S. Bancorp Investments, Inc.
|
| Coupon: | 2.625%
|
| Price: | 101.33
|
| Yield: | 2.428%
|
| Spread: | Treasuries plus 68 bps
|
| Call features: | Make-whole call before June 15, 2029 at Treasuries plus 15 bps; thereafter at par
|
| Trade date: | Jan. 11
|
| Settlement date: | Jan. 14
|
| Ratings: | Moody’s: A1
|
| S&P: A-
|
| Distribution: | SEC registered
|
| Guidance: | Treasuries plus 85 bps area
|
| Total outstanding: | $500 million, including $300 million of notes issued Oct. 2, 2019
|
| Cusip: | 049560AR6
|
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