By William Gullotti
Buffalo, N.Y., June 5 – Piedmont Natural Gas Co., Inc. sold $350 million of 5.4% 10-year senior notes at 99.999 (A3/BBB+) on Monday to yield 5.4%, according to an FWP filing and a 424B5 filing with the Securities and Exchange Commission.
The notes priced at a spread of 170 basis points over Treasuries.
There is a make-whole call option at Treasuries plus 30 bps until March 15, 2033 and a par call thereafter.
Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC, Truist Securities, Inc. and U.S. Bancorp Investments, Inc. are the joint bookrunning managers.
Proceeds will be used to repay at maturity $45 million aggregate principal amount of Piedmont’s 6.87% medium-term notes due Oct. 6, 2023, 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 about $344 million of short-term money-pool borrowings outstanding at a 5.2% annual interest rate.
The natural gas distributor is based in Charlotte, N.C.
| Issuer: | Piedmont Natural Gas Co., Inc.
|
| Amount: | $350 million
|
| Issue: | Senior notes
|
| Maturity: | June 15, 2033
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC, Truist Securities, Inc. and U.S. Bancorp Investments, Inc.
|
| Co-managers: | BNY Mellon Capital Markets, LLC, AmeriVet Securities, Inc. and CAVU Securities, LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | Hunton Andrews Kurth LLP and in-house counsel
|
| Counsel to underwriters: | Sidley Austin LLP
|
| Coupon: | 5.4%
|
| Price: | 99.999
|
| Yield: | 5.4%
|
| Spread: | Treasuries plus 170 bps
|
| Call feature: | Make-whole call before March 15, 2033 at price equal to greater of par and Treasuries plus 30 bps; thereafter at par
|
| Trade date: | June 5
|
| Settlement date: | June 8
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
| Cusip: | 720186AQ8
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