By Cristal Cody
Tupelo, Miss., Aug. 17 – Southern Co. Gas Capital Corp. priced $500 million of 1.75% senior notes due Jan. 15, 2031 (Baa2/BBB+/BBB+) on Monday at 99.67 to yield 1.785%, or a spread of Treasuries plus 110 basis points, according to an FWP filing with the Securities and Exchange Commission.
Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and Scotia Capital (USA) Inc. were the bookrunners.
The company held fixed income investor calls on Thursday and Friday for the offering.
The notes are guaranteed by Southern Co. Gas.
Proceeds will be used to repay all or a portion of the company’s commercial paper and for general corporate purposes.
Southern Co. Gas Capital is a financing arm of Atlanta-based energy services holding company Southern Co. Gas, which is in turn a subsidiary of Southern Co.
| Issuer: | Southern Co. Gas Capital Corp.
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| Guarantor: | Southern Co. Gas
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| Amount: | $500 million
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| Description: | Series 2020A senior notes
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| Maturity: | Jan. 15, 2031
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| Bookrunners: | Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and Scotia Capital (USA) Inc.
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| Senior co-managers: | BBVA Securities Inc., Intesa Sanpaolo SpA and Santander Investment Securities Inc.
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| Co-managers: | Academy Securities Inc., Cabrera Capital Markets LLC, CastleOak Securities, LP and Drexel Hamilton LLC
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| Coupon: | 1.75%
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| Price: | 99.67
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| Yield: | 1.785%
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| Spread: | Treasuries plus 110 bps
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| Call features: | Make-whole call before Oct. 15, 2030 at Treasuries plus 20 bps; thereafter at par
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| Trade date: | Aug. 17
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| Settlement date: | Aug. 21
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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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| Marketing: | Fixed income investor calls
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