Southern Co. Gas talks $450 million offering of 30-year notes at 150-155 bps area over Treasuries

By Cristal Cody

Chicago, Sept. 7 – Southern Co. Gas Capital Corp., a wholly owned subsidiary of Southern Co. Gas, is in the market with an offering of series 2021A fixed-rate senior notes, according to a 424B5 filing with the Securities and Exchange Commission.

A market source noted that the company is planning a $450 million offering of 30-year notes that is talked with a spread in the Treasuries plus 150 basis points to 155 bps area.

The parent is guaranteeing the notes.

The notes have a make-whole call and then a par call a number of months before the Sept. 30, 2051 maturity date.

BofA Securities, Inc., Goldman Sachs & Co. LLC, MUFG, Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC are leading the sale.

Senior co-managers are BMO Capital Markets Corp., Huntington Securities, Inc. and KeyBanc Capital Markets Inc.

Co-managers are Loop Capital Markets LLC, Siebert Williams Shank & Co., LLC, Cabrera Capital Markets LLC and Penserra Securities LLC.

Bank of New York Mellon Trust Co. is the trustee.

Troutman Sanders LLP is advising the issuer with Woodburn and Wedge regarding Nevada law. Hunton Andrews Kurth LLP is advising the underwriters.

Proceeds will be used to repay all of the issuer’s $452 million of short-term debt. Any remaining proceeds will be used for general corporate purposes.

Southern is an Atlanta-based gas and electric company.

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