Published on 1/3/2024 in the Prospect News Investment Grade Daily.
New Issue: Williams details $2.1 billion sale of senior notes due 2029, 2034
Chicago, Jan. 3 – Williams Cos., Inc. provided details for the $2.1 billion offering of senior notes in two parts (Baa2/BBB/BBB) that priced on Tuesday in an FWP filing with the Securities and Exchange Commission.
The first tranche came through pricing as $1.1 billion of 4.9% notes due in 2029, priced at 99.839. The yield was 4.932%. Alternatively, the notes priced at a spread of 102 basis points over the benchmark Treasury.
The public offering also includes $1 billion of 5.15% senior notes due 2034. The notes priced at 99.975 to yield 5.151%, or at Treasuries plus 122 bps.
Each of the notes comes with make-whole call protection at Treasuries plus 20 bps until a par call option begins before the respective maturity date. The par call starts on Feb. 15, 2029 for the first tranche and on Dec. 15, 2033 for the second tranche.
Barclays, Citigroup Global Markets Inc., Truist Securities, Inc. and Wells Fargo Securities, LLC are working as joint bookrunners.
The joint bookrunner list also included BOK Financial Securities, Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC and Morgan Stanley & Co. LLC.
Proceeds will be used for general corporate purposes, which include repaying outstanding commercial notes or other near-term debt maturities.
Williams is an energy infrastructure company based in Tulsa, Okla.
| Issuer: | Williams Cos., Inc.
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| Amount: | $2.1 billion
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| Issue: | Senior notes
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| Bookrunners: | Barclays, Citigroup Global Markets Inc., Truist Securities, Inc., Wells Fargo Securities, LLC, BOK Financial Securities, Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC and Morgan Stanley & Co. LLC
|
| Co-managers: | BofA Securities, Inc., CIBC World Markets Corp., MUFG Securities Americas Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and Tuohy Brothers Investment Research, Inc.
|
| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Gibson, Dunn & Crutcher LLP
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| Counsel to underwriters: | Weil, Gotshal and Manges LLP
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| Trade date: | Jan. 2
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| Settlement date: | Jan. 5
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
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|
|
| 2029 notes
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| Amount: | $1.1 billion
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| Maturity: | March 15, 2029
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| Coupon: | 4.9%
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| Price: | 99.839
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| Yield: | 4.932%
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| Spread: | Treasuries plus 102 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps; par call starting Feb. 15, 2029
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| Cusip: | 88339WAB28
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|
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| 2034 notes
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| Amount: | $1 billion
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| Maturity: | March 15, 2034
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| Coupon: | 5.15%
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| Price: | 99.975
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| Yield: | 5.151%
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| Spread: | Treasuries plus 122 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps; par call starting Dec. 15, 2033
|
| Cusip: | 88339WAC0
|
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