By Cristal Cody
Tupelo, Miss., Dec. 7 – Washington Gas Light Co. priced a $100 million reopening of its 3.65% medium-term notes due Sept. 15, 2049 (A3/A-/A) on Monday at a spread of 110 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes tightened from initial talk in the Treasuries plus 137.5 bps area.
The issue was sold at 116.606 to yield 2.796%.
The company originally priced $300 million of the notes on Sept. 10, 2019 at 99.494 to yield 3.678%, or Treasuries plus 150 bps. The total outstanding is now $400 million.
Truist Securities, Inc. and Wells Fargo Securities, LLC were the bookrunners.
Proceeds from the add-on notes will be used for general corporate purposes, including the retirement of notes outstanding under the company’s commercial paper program. As of Dec. 4, there was $365 million outstanding under the commercial paper program, with a weighted average interest rate of 0.29% and a weighted average maturity of 28 days.
Washington Gas Light is a Washington, D.C.-based natural gas utility.
| Issuer: | Washington Gas Light Co.
|
| Amount: | $100 million reopening
|
| Description: | Series L medium-term notes
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| Maturity: | Sept. 15, 2049
|
| Bookrunners: | Truist Securities, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | CIBC World Markets Corp., MUFG, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Coupon: | 3.65%
|
| Price: | 116.606
|
| Yield: | 2.796%
|
| Spread: | Treasuries plus 110 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before March 15, 2049; thereafter at par
|
| Trade date: | Dec. 7
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| Settlement date: | Dec. 10
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| Ratings: | Moody’s: A3
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| S&P: A-
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| Fitch: A
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| Distribution: | SEC registered
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| Price guidance: | Treasuries plus 137.5 bps area
|
| Total outstanding: | $400 million, including $300 million of notes priced Sept. 10, 2019 at 99.494 to yield 3.678%, or Treasuries plus 150 bps
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