By Cristal Cody
Chicago, March 8 – ONE Gas, Inc. sold a three-part transaction on Monday for $2.5 billion (A3/BBB+), according to an FWP filing with the Securities and Exchange Commission.
An $800 million floating-rate tranche of notes due March 11, 2023 priced at par with an interest rate based on Libor plus 61 basis points, which resets quarterly. The notes have six months of call protection.
A $1 billion tranche of 0.85% notes due March 11, 2023 priced at 99.97 to yield 0.865%, or a spread of Treasuries plus 70 bps. The tranche was talked with a spread in the Treasuries plus 80 bps area. The notes can be called after six months.
The issuer also sold $700 million of 1.1% senior notes due March 11, 2024 at 99.885 to yield 1.139%, or a spread of Treasuries plus 80 bps. The tranche was talked in the Treasuries plus 90 bps area, initially. The tranche can be called at par plus interest after six months.
BofA Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, RBC Capital Markets, LLC, Truist Securities, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC were bookrunners for the offering.
Proceeds will be used for general corporate purposes.
ONE Gas is a natural gas distribution company based in Tulsa, Okla.
| Issuer: | ONE Gas, Inc.
|
| Issue: | Senior notes
|
| Amount: | $2.5 billion
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, RBC Capital Markets, LLC, Truist Securities, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | BOK Financial Securities, Inc.
|
| Pricing date: | March 8
|
| Settlement date: | March 11
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
|
|
| Floaters due 2023
|
| Issue: | Floating-rate senior notes
|
| Amount: | $800 million
|
| Maturity: | March 11, 2023
|
| Coupon: | Libor plus 61 bps
|
| Price: | Par
|
| Call: | After Sept. 11, 2021 at par plus interest
|
|
|
| 2023 notes
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Maturity: | March 11, 2023
|
| Coupon: | 0.85%
|
| Price: | 99.7
|
| Yield: | 0.865%
|
| Spread: | Treasuries plus 70 bps
|
| Call: | After Sept. 11. 2021 at par plus interest
|
| Price talk: | Treasuries plus 80 bps
|
|
|
| 2024 notes
|
| Issue: | Senior notes
|
| Amount: | $700 million
|
| Maturity: | March 11, 2024
|
| Coupon: | 1.1%
|
| Price: | 99.885
|
| Yield: | 1.139%
|
| Spread: | Treasuries plus 80 bps
|
| Call: | After Sept. 11, 2021 at par plus interest
|
| Price talk: | Treasuries plus 90 bps
|
|
|
© 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.
