ONE Gas announces three-part sale of notes through three bookrunners

By Devika Patel and Cristal Cody

Knoxville, Tenn., March 8 – ONE Gas, Inc. expects to price notes in three tranches, according to a 424B5 filed with the Securities and Exchange Commission.

The offering consists of one tranche of floating-rate notes due March 11, 2023 and two tranches of fixed-rate notes due March 11, 2023 and March 11, 2024.

The floating-rate notes due 2023 will come with a rate based on Libor.

The fixed-rate notes due 2023 are being talked with a spread in the Treasuries plus 80 basis points area.

The fixed-rate notes due 2024 have initial talk in the Treasuries plus 90 bps area.

A market source mentioned a possible fourth tranche of floating-rate notes due March 11, 2024 with a rate based on Libor.

The notes are initially non-callable and then feature a par call.

BofA Securities Inc., J.P. Morgan Securities LLC and Mizuho Securities USA Inc. are the bookrunners.

Proceeds will be used for general corporate purposes.

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

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