By Lisa Kerner
Charlotte, N.C., Nov. 24 - Southwest Gas Corp. agreed to sell $125 million of 6.1% senior notes due February 2041 in a private placement, according to an 8-K filed with the Securities and Exchange Commission.
Purchasers include Metropolitan Life Insurance Co., John Hancock Life Insurance Co. (U.S.A.), some of their respective affiliates and Union Fidelity Life Insurance Co.
The notes have a make-whole call at Treasuries plus 50 basis points.
Southwest expects to close the sale on Feb. 15.
Proceeds will be used to partially repay the maturing $200 million of 8.375% debentures due in February 2011.
Under the Nov. 18 note purchase agreement, Southwest Gas agreed to customary covenants related to a maximum leverage ratio, a minimum net worth and limitations on the company's ability to incur secured debt or liens.
Southwest is a Las Vegas natural gas company.
| Issuer: | Southwest Gas Corp.
|
| Issue: | Senior notes
|
| Amount: | $125 million
|
| Maturity: | February 2041
|
| Coupon: | 6.15%
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Pricing date: | Nov. 18
|
| Settlement date: | Feb. 15
|
| Distribution: | Private placement
|
| Purchasers: | Metropolitan Life Insurance Co., John Hancock Life Insurance Co. (U.S.A.), Union Fidelity Life Insurance Co.
|
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