New Issue: Southwest Gas prices $300 million 5.8% notes due 2027 at Treasuries plus 190 bps

By Wendy Van Sickle and Cristal Cody

Columbus, Ohio, Nov. 29 – Southwest Gas Corp. priced $300 million of 5.8% five-year senior notes (Baa1/BBB/A) on Tuesday at 99.867 to yield 5.831%, or 190 basis points over Treasuries, according to an FWP filed with the Securities and Exchange Commission.

Initial price talk had the notes coming in the Treasuries plus 215 bps area, according to a market source.

BNY Mellon Capital Markets, LLC, BofA Securities, Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC. were the bookrunners.

Proceeds will be used to repay outstanding amounts under the company’s credit facility. Any remaining funds will be used for general corporate purposes.

The natural gas distributor is based in Las Vegas.

Issuer:	Southwest Gas Corp.
Amount:	$300 million
Issue:	Senior notes
Maturity:	Dec. 1, 2027
Bookrunners:	BNY Mellon Capital Markets, LLC, BofA Securities, Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC
Co-managers:	Blaylock Van, LLC, Penserra Securities LLC and Samuel A. Ramirez & Co. Inc.
Trustee:	Bank of New York Mellon Trust Co., NA
Counsel to issuer:	Morrison & Foerster LLP
Counsel to underwriters:	Ballard Spahr LLP
Coupon:	5.8%
Price:	99.867
Yield:	5.831%
Spread:	190 bps over Treasuries
Call:	Make-whole call at Treasuries plus 30 bps until Nov. 1, 2027, then a par call
Trade date:	Nov. 29
Settlement date:	Dec. 1
Ratings:	Moody’s: Baa1
	S&P: BBB
	Fitch: A
Distribution:	SEC registered
Price talk:	Treasuries plus 215 bps area
Cusip:	845011AF2

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