By Sheri Kasprzak
New York, March 16 - AGL Capital Corp. priced $500 million of 30-year senior notes on Wednesday, upsized from $400 million, according to a term sheet.
The 5.875% notes (Baa1/BBB-/A-) were priced at 99.833 to yield 5.887%, or 150 basis points over Treasuries.
The notes feature a make-whole call at Treasuries plus 25 bps.
Joint bookrunners are Goldman Sachs & Co., Morgan Stanley & Co. Inc., RBS Securities Inc. and Bank of America Merrill Lynch.
The co-managers are Credit Agricole CIB, Deutsche Bank Securities Inc., Mitsubishi UFJ Securities, Scotia Capital, SunTrust Robinson Humphrey Inc., US Bancorp and Wells Fargo Securities LLC.
Proceeds will be used to assist the company with the completion of its merger with Nicor Inc.
AGL Capital, based in Atlanta, is a subsidiary of AGL Resources Inc., an energy services holding company.
| Issuer: | AGL Capital Corp.
|
| Issue: | Senior notes
|
| Amount: | $500 million, increased from $400 million
|
| Maturity: | March 15, 2041
|
| Bookrunners: | Goldman Sachs & Co., Morgan Stanley & Co. Inc., RBS Securities Inc., Bank of America Merrill Lynch
|
| Co-managers: | Credit Agricole CIB, Deutsche Bank Securities Inc., Mitsubishi UFJ Securities, Scotia Capital, SunTrust Robinson Humphrey Inc., US Bancorp, Wells Fargo Securities LLC
|
| Coupon: | 5.875%
|
| Price: | 99.833
|
| Yield: | 5.887%
|
| Spread: | Treasuries plus 150 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB-
|
| Fitch: A-
|
| Pricing date: | March 16
|
| Settlement date: | March 21
|
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