New Issue: Piedmont Natural Gas prices $400 million 3.35% 30-year notes at 195 bps spread

By Cristal Cody

Tupelo, Miss., May 18 – Piedmont Natural Gas Co., Inc. sold $400 million of 3.35% 30-year senior notes at 99.287 to yield 3.388%, or a spread of 195 basis points over Treasuries, on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes (A3/A-) were talked to print in the 237.5 bps spread area.

Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America Inc. and U.S. Bancorp Investments Inc. were the bookrunners

Proceeds will be used to pay down short-term debt and for general corporate purposes.

The natural gas distributor is based in Charlotte, N.C.

Issuer:	Piedmont Natural Gas Co., Inc.
Amount:	$400 million
Description:	Senior notes
Maturity:	June 1, 2050
Bookrunners:	Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America Inc. and U.S. Bancorp Investments Inc.
Co-manager:	Academy Securities, Inc.
Coupon:	3.35%
Price:	99.287
Yield:	3.388%
Spread:	Treasuries plus 195 bps
Trade date:	May 18
Settlement date:	May 21
Call feature:	Make-whole call before Dec. 1, 2049 at price equal to greater of par and Treasuries plus 30 bps; thereafter at par
Ratings:	Moody’s: A3
	S&P: A-
Distribution:	SEC registered
Price guidance:	Treasuries plus 237.5 bps area

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