By Devika Patel
Knoxville, Tenn., Nov. 2 – ONE Gas, Inc. (A2/A) offered further details about a $400 million sale of 4.5% 30-year senior notes that priced on Thursday at a spread of Treasuries plus 118 basis points, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 98.912 to yield 4.567%.
There is a make-whole call at Treasuries plus 20 bps until May 1, 2048, then a par call.
The notes were initially talked to price in the Treasuries plus 130 bps area.
U.S. Bancorp Investments Inc. and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used to repay debt under the company’s commercial paper program, to repay its $300 million 2.07% senior notes due 2019 and for general corporate purposes.
ONE Gas is a natural gas distribution company based in Tulsa, Okla.
| Issuer: | ONE Gas, Inc.
|
| Amount: | $400 million
|
| Description: | Senior notes
|
| Maturity: | Nov. 1, 2048
|
| Bookrunners: | U.S. Bancorp Investments Inc. and J.P. Morgan Securities LLC
|
| Senior co-managers: | BofA Merrill Lynch and Mizuho Securities USA Inc.
|
| Co-managers: | BOK Financial Securities, Inc., BB&T Capital Markets, Morgan Stanley & Co. LLC, RBC Capital Markets Corp. and Wells Fargo Securities LLC
|
| Coupon: | 4.5%
|
| Price: | 98.912
|
| Yield: | 4.567%
|
| Spread: | Treasuries plus 118 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until May 1, 2048, then a par call
|
| Trade date: | Nov. 1
|
| Settlement date: | Nov. 5
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 130 bps area
|
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