Atmos Energy: Demand, attractive yields made bond sale successful

By Andrea Heisinger

New York, June 8 - The $400 million sale of 30-year bonds by Atmos Energy Corp. was well-received by investors and priced well, a company spokesperson said Wednesday.

The bond deal was done Tuesday and books closed massively oversubscribed at about $2.5 billion, a source close to the sale had said.

"It went very well - we were happy with the yield and had a lot of quality investors," said company spokesperson Susan Giles.

She added that the company had been wanting to tap the market sometime in June and had talked about pricing on Monday but held off a day due to volatility.

While there was some competition in the primary market from other energy names, there was still "an amazing amount of interest," Giles said.

The 30-year maturity was decided on due to some shorter-term debt coming due in the next few years among other reasons.

"You can't get 30-year rates this cheap, so we didn't want to go with shorter maturities," she said.

Atmos Energy's last bond sale was $450 million of a 10-year maturity priced at a considerable yield of 8.529% on March 23, 2009. The new 30-year bonds priced to yield 5.522%.

The natural gas distribution, transmission and storage company is based in Dallas.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.