Published on 10/5/2021 in the Prospect News Investment Grade Daily.
New Issue: Williams Cos. prices $1.25 billion of senior notes due 2031, 2051
By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Oct. 5 – Williams Cos. Inc. priced $1.25 billion of senior notes (Baa2/BBB/BBB) in two tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The company sold a $600 million add-on to its 2.6% notes due March 15, 2031 at 100.973 to yield 2.481% and a spread of Treasuries plus 95 basis points.
The add-on was talked at Treasuries plus 115 bps to 120 bps, according to a market source.
A $650 million tranche of new 3.5% 30-year notes priced at 99.833 to yield 3.509%, or a 142 bps over Treasuries spread.
Price talk on the tranche was in the Treasuries plus 170 bps area.
Barclays, SMBC Nikko Securities America, Inc., Truist Securities, Inc, Wells Fargo Securities, LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, PNC Capital Markets LLC and U.S. Bancorp Investments, Inc. are joint bookrunning managers.
Proceeds will be used to repay or redeem the company’s 2.25% notes due 2020 and purchase up to $500 million of its 2.75% senior notes due 2022 and its 4.2% senior notes due 2022 in a tender offer, as well as for general corporate purposes.
Tulsa, Okla.-based Williams provides infrastructure for the delivery of natural gas products.
| Issuer: | Williams Cos. Inc.
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| Amount: | $1.25 billion
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| Securities: | Senior notes
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| Bookrunners: | Barclays, SMBC Nikko Securities America, Inc., Truist Securities, Inc, Wells Fargo Securities, LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, PNC Capital Markets LLC and U.S. Bancorp Investments, Inc.
|
| Co-managers: | BofA Securities, Inc., BOK Financial Securities, Inc., CIBC World Markets Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC
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| Trade date: | Oct. 5
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| Settlement date: | Oct. 8
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
|
|
|
| Add-on to 2031 notes
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| Amount: | $600 million
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| Maturity: | March 15, 2031
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| Coupon: | 2.6%
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| Price: | 100.973
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| Yield: | 2.481%
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| Spread: | Treasuries plus 95 bps
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| Call features: | Make-whole call before Dec. 15, 2030 at Treasuries plus 20 bps; thereafter at par
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| Total amount: | $1.5 billion, including $900 million priced previously
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| Talk: | Treasuries plus 115 bps to 120 bps
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| Cusip: | 969457BY5
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|
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| 30-year notes
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| Amount: | $650 million
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| Maturity: | Oct. 15, 2051
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| Coupon: | 3.5%
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| Price: | 99.833
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| Yield: | 3.509%
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| Spread: | Treasuries plus 142 bps
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| Call features: | Make-whole call before April 15, 2051 at Treasuries plus 30 bps; thereafter at par
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| Talk: | Treasuries plus 170 bps area
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| Cusip: | 88339WAA4
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