Williams says greenshoe exercised, raising convertibles to $1.1 billion

New York, Jan. 15 - Williams Cos. Inc. said underwriters of its recent offering of mandatory convertibles exercised $100 million of the over-allotment option, raising the total size to $1.1 billion.

Williams originally sold $1 billion of the Feline PACS after the market closed on Jan. 7. The securities priced at par of $25 to yield 9.0% with the appreciation capped at 65%

The greenshoe was for up to $150 million of the securities.

Bookrunners were Merrill Lynch & Co. and Salomon Smith Barney.

Proceeds from the offering will be used as part of the balance sheet strengthening plan announced on Dec. 19 to fund the company's capital program, repay commercial paper and other short-term debt and for general corporate purposes, Williams said.

"We look at the positive reception of our offering combined with the rapid reaffirmation of our investment grade credit ratings as significant expressions of confidence by the financial markets," said Steve Malcolm, president and chief executive officer of the Tulsa, Okla. energy company in a news release. "The successful completion of this financing will further enable us to execute our strategy of balanced growth through expanding our asset base while providing our customers with a suite of services to help them manage energy price risk and certainty of adequate supply."

The convertibles trade on the New York Stock Exchange under the ticker symbol WMB PrI.

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