By Paul A. Harris
St. Louis, Oct. 27 - Colorado Interstate Gas Co. priced a quick-to-market $400 million issue of 6.8% 10-year senior notes (B1/B) at 99.952 to yield 6.806%, according to market sources.
The yield printed at a 225 basis point spread to Treasuries, on top of price talk.
Citigroup and Credit Suisse First Boston ran the books for the Rule 144A with registration rights issue. The co-managers were ABN Amro, BNP Paribas, HVB Group, The Royal Bank of Scotland and SG Corporate & Investment Banking.
Proceeds will be used to fund the purchase of Wyoming Interstate Co. for $212 million, as well as to fund a cash advance to El Paso Corp.
The issuer is a natural gas transport company based in Colorado Springs, Colo.
| Issuer: | Colorado Interstate Gas Co.
|
| Amount: | $400 million
|
| Maturity: | Nov. 15, 2015
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| Security description: | Senior notes
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| Bookrunners: | Citigroup, Credit Suisse First Boston
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| Co-managers: | ABN Amro, BNP Paribas, HVB Group, The Royal Bank of Scotland, SG Corporate & Investment Banking
|
| Coupon: | 6.8%
|
| Price: | 99.952
|
| Yield: | 6.806%
|
| Spread: | 225 basis points
|
| Call protection: | Make-whole call at Treasuries plus 50 basis points
|
| Trade date: | Oct. 27
|
| Settlement date: | Nov. 1
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Price talk: | Treasuries plus 225 basis points area
|
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