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AGL Resources plans bonds to finance merger agreement with Nicor
By Jennifer Chiou
New York, Dec. 7 - AGL Resources Inc. announced that it plans to put in place long-term financing comprised exclusively of bonds to help fund its definitive merger agreement with Nicor Inc.
AGL Resources said in a news release that it will pay for the transaction through an exchange of stock with Nicor shareholders in addition to about $1 billion of cash.
The Atlanta-based natural gas distributor said that it has committed financing from Goldman Sachs Bank USA.
AGL and Nicor plan to create a leading U.S. natural gas distribution company under the agreement. Nicor will merge with a subsidiary of AGL Resources in a transaction with an enterprise value of $3.1 billion, including a total equity value of $2.4 billion.
Following the merger, AGL said it will maintain its corporate headquarters in Atlanta and locate its newly expanded gas distribution headquarters in Naperville, Ill.
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