Published on 5/10/2022 in the Prospect News Investment Grade Daily.
New Issue: Piedmont Natural Gas sells $400 million 5.05% 30-year senior notes
Chicago, May 10 – Piedmont Natural Gas Co., Inc. sold $400 million of 5.05% 30-year senior notes (A3/BBB+) on Tuesday, according to a FWP filing with the Securities and Exchange Commission.
The notes priced at 99.129 to yield 5.107%, or a spread of 197 basis points over Treasuries.
The notes feature a make-whole call of Treasuries plus 30 bps until Nov. 15, 2051 followed by a par call.
Mizuho Securities USA Inc., RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., Wells Fargo Securities, LLC, MUFG Securities Americas Inc. and U.S. Bancorp Investments Inc. are the joint bookrunning managers.
Proceeds will be used to pay down a portion of outstanding intercompany short-term debt under the company’s money-pool borrowing arrangement with Duke Energy Corp. and for general corporate purposes.
As of March 31, the company had approximately $360 million of short-term money-pool borrowings outstanding at a 0.53% annual interest rate.
Piedmont is a Charlotte, N.C.-based natural gas distributor.
| Issuer: | Piedmont Natural Gas Co., Inc.
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| Amount: | $400 million
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| Issue: | Senior notes
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| Maturity: | May 15, 2052
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| Bookrunners: | Mizuho Securities USA Inc., RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., Wells Fargo Securities, LLC, MUFG Securities Americas Inc. and U.S. Bancorp Investments Inc.
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| Co-managers: | BNY Mellon Capital Markets, LLC, Loop Capital Markets LLC, Regions Securities LLC, Cabrera Capital Markets LLC and C.L. King & Associates, Inc.
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| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Hunton Andrews Kurth LLP
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| Counsel to underwriters: | Sidley Austin LLP
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| Coupon: | 5.05%
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| Price: | 99.129
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| Yield: | 5.107%
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| Spread: | Treasuries plus 197 bps
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| Call features: | Make-whole call at Treasuries plus 30 bps until Nov. 15, 2051; thereafter at par
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| Trade date: | May 10
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| Settlement date: | May 13
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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: | 720186AP0
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