New Issue: ONE Gas sells $300 million 2% 10-year notes at Treasuries plus 145 bps

By Cristal Cody

Tupelo, Miss., April 29 – ONE Gas, Inc. (A2/A) priced $300 million of 2% 10-year senior notes at a spread of Treasuries plus 145 basis points on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes were initially talked to price in the Treasuries plus 187.5 bps area.

The issue priced at 99.476 to yield 2.058%.

BofA Securities Inc. and Mizuho Securities USA Inc. were the bookrunners.

Proceeds will be used to repay debt under the company’s commercial paper program and for general corporate purposes.

ONE Gas is a natural gas distribution company based in Tulsa, Okla.

Issuer:	ONE Gas, Inc.
Amount:	$300 million
Description:	Senior notes
Maturity:	May 15, 2030
Bookrunners:	BofA Securities Inc. and Mizuho Securities USA Inc.
Senior co-managers:	U.S. Bancorp Investments, Inc. and BOK Financial Securities, Inc.
Co-managers:	J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC
Coupon:	2%
Price:	99.476
Yield:	2.058%
Spread:	Treasuries plus 145 bps
Call features:	Make-whole call before Feb. 15, 2030 at Treasuries plus 25 bps; thereafter at par
Trade date:	April 29
Settlement date:	May 4
Issuer ratings:	Moody’s: A2
	S&P: A
Distribution:	SEC registered
Price guidance:	Treasuries plus 187.5 bps area

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