New Issue: Piedmont Natural Gas prices $350 million 2.5% 10-year notes at 95 bps spread

By Wendy Van Sickle and Cristal Cody

Columbus, Ohio, March 8 – Piedmont Natural Gas Co., Inc. sold $350 million of 2.5% 10-year senior notes at 99.631 to yield 2.542%, or a spread of 95 basis points over Treasuries, on Monday, according to a an FWP filing with the Securities and Exchange Commission.

The notes (A3/BBB+) were talked to print in the 110 bps to 115 bps spread area.

Mizuho Securities USA Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc. and U.S. Bancorp Investments Inc. were the bookrunners

Proceeds will be used to repay at maturity $160 million of the company’s 4.24% series B senior notes due June 6, 2021, to pay down some 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:	$350 million
Description:	Senior notes
Maturity:	March 15, 2031
Bookrunners:	Mizuho Securities USA Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc. and U.S. Bancorp Investments Inc.
Co-managers:	BNY Mellon Capital Markets, LLC, Cabrera Capital Markets LLC, KeyBanc Capital Markets Inc., Multi-Bank Securities, Inc. and Siebert Williams Shank & Co., LLC
Coupon:	2.5%
Price:	99.631
Yield:	2.542%
Spread:	Treasuries plus 95 bps
Trade date:	March 8
Settlement date:	March 11
Call feature:	Make-whole call before Dec. 15, 2030 at price equal to greater of par and Treasuries plus 15 bps; thereafter at par
Ratings:	Moody’s: A3
	S&P: BBB+
Distribution:	SEC registered
Price guidance:	Treasuries plus 10 bps to 115 bps area

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