Alabama Gas to place $35 million 3.21% notes due 2025, $80 million 4.31% notes due 2045

By Lisa Kerner

Charlotte, N.C., June 5 – Alabama Gas Corp. agreed to sell $115 million of senior notes in two tranches to some institutional investors.

The company will issue $35 million of 3.21% series 2015 senior notes, tranche A, due 2025 on Sept. 15 and $80 million of 4.31% series 2015 senior notes, tranche B, due 2045 on Dec. 1.

Interest on the tranche A notes is payable semiannually on March 15 and Sept. 15, beginning on March 15, 2016, according to an 8-K filing with the Securities and Exchange Commission.

Interest on the tranche B notes is payable semiannually on June 1 and Dec. 1, beginning June 1, 2016.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Under the June 5 note purchase agreement, the company’s consolidated debt is limited to 70% of its consolidated capitalization.

The natural gas distributor is based in Birmingham, Ala.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.