New Issue: Williams prices $1.5 billion of senior notes due 2026, 2033

By Wendy Van Sickle and Cristal Cody

Columbus, Ohio, Feb. 27 – Williams Cos. Inc. priced $1.5 billion of senior notes (Baa2/BBB/BBB) in two tranches on Monday, according to an FWP filing with the Securities and Exchange Commission and details from a market source.

The company sold $750 million of 5.4% three-year notes at 99.907 to yield 5.434% and a spread of 93 basis points over Treasuries. Price talk was 125 bps area over the benchmark.

A $750 million tranche of 5.65% 10-year notes priced at 99.891 to yield 5.664%, or 175 bps over Treasuries, versus talk in the Treasuries plus 200 bps area.

The bookrunners are Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, Barclays, SMBC Nikko Securities America, Inc., Truist Securities, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC.

Proceeds will be used for general corporate purposes, which may include the repayment of outstanding commercial paper and near-term debt maturities. As of Feb. 24, the company had about $710 million of commercial paper notes outstanding with a weighted average annual interest rate of 4.89% and a weighted average maturity of 13.06 days.

Tulsa, Okla.-based Williams provides infrastructure for the delivery of natural gas products.

Issuer:	Williams Cos. Inc.
Amount:	$1.5 billion
Issue:	Senior notes
Bookrunners:	Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, Barclays, SMBC Nikko Securities America, Inc., Truist Securities, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
Co-managers:	BofA Securities, Inc., BOK Financial Securities, Inc., CIBC World Markets Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC and Tuohy Brothers Investment Research, Inc.
Trustee:	Bank of New York Mellon Trust Co., NA
Counsel to issuer:	Gibson, Dunn & Crutcher LLP
Counsel to underwriters:	Weil, Gotshal and Manges LLP
Trade date:	Feb. 27
Settlement date:	March 2
Ratings:	Moody’s: Baa2
	S&P: BBB
	Fitch: BBB
Distribution:	SEC registered
Three-year notes
Amount:	$750 million
Maturity:	March 2, 2026
Coupon:	5.4%
Price:	99.907
Yield:	5.434%
Spread:	Treasuries plus 93 bps
Call features:	Make-whole call at Treasuries plus 15 bps until maturity
Price talk:	Treasuries plus 125 bps area
Cusip:	69457CH1
10-year notes
Amount:	$750 million
Maturity:	March 15, 2033
Coupon:	5.65%
Price:	99.891
Yield:	5.664%
Spread:	Treasuries plus 175 bps
Call features:	Make-whole call before Dec. 15, 2032 at Treasuries plus 30 bps; thereafter at par
Price talk:	Treasuries plus 200 bps area
Cusip:	969457CJ7

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