By Paul A. Harris
St. Louis, Feb. 26 - Williams Cos. priced a split-rated $600 million issue of 8.75% 11-year senior notes (Baa3/BB-/) at 99.159 to yield 8.875%, or 590.5 basis points over Treasuries, in a quick-to-market Thursday transaction, according to market sources.
The yield came at the tight end of the 9% area talk.
Investment-grade accounts made up 85% of the order book, with the remaining 15% comprised of high-yield names, according to an informed source.
J.P. Morgan Securities Inc., Banc of America Securities LLC, Barclays Capital Inc. and Citigroup Global Markets Inc. were joint bookrunners for the Rule 144A with registration rights deal, which was upsized from $500 million.
Proceeds from the offering will be used for general corporate purposes, including enhancing the company's liquidity and funding capital expenditures.
Tulsa, Okla.-based Williams finds, produces, gathers, processes and transports natural gas.
| Issuer: | Williams Cos.
|
| Face amount: | $600 million, upsized from $500 million
|
| Proceeds: | $594.954 million
|
| Maturity: | Jan. 15, 2020
|
| Bookrunners: | J.P. Morgan Securities Inc., Banc of America Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc.
|
| Coupon: | 8.75%
|
| Price: | 99.159
|
| Yield: | 8.875%
|
| Spread: | 590.5 bps
|
| Call protection: | Non-callable with a make-whole provision at Treasuries plus 50 bps
|
| Trade date: | Feb. 26
|
| Settlement date: | March 5
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 9% area
|
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