By Devika Patel
Knoxville, Tenn., June 2 – Southwest Gas Corp. offered further details, including the price and yield, of a $450 million sale of 2.2% 10-year senior notes (A3/A-/A) that priced on Monday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 99.874 to yield 2.214%, with a spread of 155 basis points over Treasuries.
The notes priced tighter than initial talk in the 195 bps over Treasuries area and guidance at the 165 bps area, plus or minus 5 bps.
KeyBanc Capital Markets Inc., MUFG, TD Securities (USA) LLC and U.S. Bancorp Investments Inc. were the bookrunners.
Proceeds will be used to redeem the company’s $125 million of 4.45% senior notes due 2020 in full, to reduce borrowings under its credit facility and for general corporate purposes.
The natural gas distributor is based in Las Vegas.
| Issuer: | Southwest Gas Corp.
|
| Amount: | $450 million
|
| Description: | Senior notes
|
| Maturity: | June 15, 2030
|
| Bookrunners: | KeyBanc Capital Markets Inc., MUFG, TD Securities (USA) LLC and U.S. Bancorp Investments Inc.
|
| Co-managers: | Blaylock Van, LLC, Penserra Securities LLC and Samuel A. Ramirez & Co. Inc.
|
| Coupon: | 2.2%
|
| Price: | 99.874
|
| Yield: | 2.214%
|
| Spread: | Treasuries plus 155 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps until March 15, 2030, then a par call
|
| Trade date: | June 1
|
| Settlement date: | June 4
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Fitch: A
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 165 bps area, plus or minus 5 bps; initial talk at Treasuries plus 195 bps area
|
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