Published on 12/11/2023 in the Prospect News Investment Grade Daily.
New Issue: ONE Gas sells $300 million of 5.1% notes due 2029 with 87 bps spread
By William Gullotti
Buffalo, N.Y., Dec. 11 – ONE Gas, Inc. priced $300 million of 5.1% senior notes due April 1, 2029 (A3/A-) on Monday, according to an FWP filing and a 424B5 filing with the Securities and Exchange Commission.
The notes priced at 99.861 to yield 5.132%, or a spread of 87 basis points over Treasuries.
The notes will feature a make-whole call until one month prior to maturity, followed by a par call.
J.P. Morgan Securities LLC, Mizuho Securities USA LLC and U.S. Bancorp Investments, Inc. are the joint bookrunning managers 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. On Sept. 30, the company had $327 million of commercial paper borrowings, which had a weighted-average maturity of 19 days and a weighted-average interest rate of 5.55%.
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: | April 1, 2029
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| Bookrunners: | J.P. Morgan Securities LLC, Mizuho Securities USA LLC and U.S. Bancorp Investments, Inc.
|
| Co-managers: | BofA Securities, Inc., RBC Capital Markets, LLC, Truist Securities, Inc., Wells Fargo Securities, LLC and 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
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| Counsel to underwriters: | Hunton Andrews Kurth LLP
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| Coupon: | 5.1%
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| Price: | 99.861
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| Yield: | 5.132%
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| Spread: | Treasuries plus 87 bps
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| Call option: | Make-whole call at Treasuries plus 15 bps prior to March 1, 2029, par call after that
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| Pricing date: | Dec. 11
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| Settlement date: | Dec. 13
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| Ratings: | Moody’s: A3
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| S&P: A-
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| Distribution: | SEC registered
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| Cusip: | 68235PAN8
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