By Andrea Heisinger
New York, June 7 - Atmos Energy Corp. priced an upsized $400 million of 5.5% 30-year senior bonds on Tuesday to yield Treasuries plus 125 basis points, said a source who worked on the trade.
The deal was initially announced at $300 million. The bonds were sold at the tight end of guidance in the 130 bps area.
The bonds (Baa1/BBB+/A-) were sold at 99.678 to yield 5.522%.
The securities are callable at the greater of par or a make-whole at Treasuries plus 20 bps until Dec. 15, 2040. After that date they're callable at par.
BNP Paribas Securities Corp., Morgan Stanley & Co., Inc., UBS Securities LLC and Wells Fargo Securities LLC were the bookrunners.
Senior co-managers were Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., RBS Securities Inc. and U.S. Bancorp Investments Inc.
Co-managers were BOSC, Inc., BB&T Capital Markets and J.P. Morgan Securities LLC.
Proceeds will be used to repay a substantial portion of outstanding commercial paper. Any remainder will be used for funding capital expenditures and general corporate purposes.
The natural gas distribution, transmission and storage company is based in Dallas.
| Issuer: | Atmos Energy Corp.
|
| Issue: | Senior notes
|
| Amount: | $400 million, increased from $300 million
|
| Maturity: | June 15, 2041
|
| Bookrunners: | BNP Paribas Securities Corp., Morgan Stanley & Co., Inc., UBS Securities LLC, Wells Fargo Securities LLC
|
| Senior co-managers: | Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., RBS Securities Inc., U.S. Bancorp Investments Inc.
|
| Co-managers: | BOSC, Inc., BB&T Capital Markets, J.P. Morgan Securities LLC
|
| Coupon: | 5.5%
|
| Price: | 99.678
|
| Yield: | 5.522%
|
| Spread: | Treasuries plus 125 bps
|
| Call: | Greater of par or make-whole at Treasuries plus 20 bps prior to Dec. 15, 2040, then at par
|
| Trade date: | June 7
|
| Settlement date: | June 10
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Fitch: A-
|
| Price talk: | 130 bps area
|
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