Published on 8/4/2022 in the Prospect News Investment Grade Daily.
New Issue: ONE Gas prices $300 million 4.25% notes due 2032 with 165 bps spread
By Marisa Wong
Los Angeles, Aug. 4 – ONE Gas, Inc. priced $300 million of 4.25% senior notes due Sept. 1, 2032 (A3/BBB+), according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.197 to yield 4.349%, or a spread of 165 basis points over Treasuries.
The notes will feature a make-whole call until three months prior to maturity, followed by a par call.
RBC Capital Markets, LLC, Truist Securities, Inc., Wells Fargo Securities, LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC and U.S. Bancorp Investments, Inc. are the joint bookrunners for the SEC-registered deal.
Proceeds will be used to repay amounts outstanding 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
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| Issue: | Senior notes
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| Maturity: | Sept. 1, 2032
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| Bookrunners: | RBC Capital Markets, LLC, Truist Securities, Inc., Wells Fargo Securities, LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC and U.S. Bancorp Investments, Inc.
|
| Co-manager: | BOK Financial Securities, Inc.
|
| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Skadden, Arps, Slate, Meagher & Flom LLP and GableGotwals
|
| Counsel to underwriters: | Hunton Andrews Kurth LLP
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| Coupon: | 4.25%
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| Price: | 99.197
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| Yield: | 4.349%
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| Spread: | Treasuries plus 165 bps
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| Call option: | Make-whole call at Treasuries plus 25 bps prior to June 1, 2032, par call after that
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| Pricing date: | Aug. 4
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| Settlement date: | Aug. 8
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| Ratings: | Moody’s: A3
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| S&P: BBB+
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| Distribution: | SEC registered
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| Cusip: | 68235PAM0
|
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