By Paul A. Harris
St. Louis, April 6 - Transcontinental Gas Pipe Line Corp. priced an upsized $200 million issue of 10-year senior notes (Ba2/B+/BB+) at par to yield 6.4% on Thursday, according to an informed source.
The notes priced at a 150 basis points spread to Treasuries, on the tight end of the Treasuries plus 150 to 162.5 basis point price talk.
Banc of America Securities LLC and The Royal Bank of Scotland were joint bookrunners for the Rule 144A with registration rights offering. JP Morgan, Lehman Brothers and Scotia Capital were the co-managers.
Proceeds will be used for general corporate purposes, including the funding of capital expenditures.
The issue was upsized from $175 million.
The issuer is a regulated natural gas pipeline company, a subsidiary of The Williams Cos. Inc., and has headquarters in Tulsa, Okla.
| Issuer: | Transcontinental Gas Pipe Line Corp.
|
| Amount: | $200 million (increased from $175 million)
|
| Maturity: | April 15, 2016
|
| Security description: | Senior notes
|
| Bookrunners: | Banc of America Securities LLC, The Royal Bank of Scotland
|
| Co-managers: | JP Morgan, Lehman Brothers, Scotia Capital
|
| Coupon: | 6.4%
|
| Price: | Par
|
| Yield: | 6.4%
|
| Spread: | 150 bps
|
| Call protection: | Make-whole call at Treasuries plus 35 bps
|
| Trade date: | April 6
|
| Settlement date: | April 11
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: B+
|
| Fitch: BB+
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | Treasuries plus 150-162.5 bps
|
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