Published on 8/8/2023 in the Prospect News Investment Grade Daily.
New Issue: Williams prices $1.25 billion of senior notes, add-on to 5.4% notes due 2026
By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., Aug. 8 – Williams Cos., Inc. sold a $1.25 billion offering of senior notes (Baa2/BBB/BBB), including an add-on to its 5.4% notes due 2026, according to an FWP filed with the Securities and Exchange Commission.
The $350 million of additional 5.4% senior notes due March 2, 2026 priced at 100.181 plus accrued interest from March 2 totaling $8,295,000 to yield 5.322%, or at 87.5 basis points over Treasuries. They are an add-on to the $750 million of 2026 notes issued on March 2. Price talk was in the Treasuries plus 110 bps area.
The $900 million of 5.3% senior notes due Aug. 15, 2028 priced at 99.886 to yield 5.326%, or at a spread of 118 bps over Treasuries. Initial talk had the notes coming in the 145 bps area.
The 2026 tranche features an optional make-whole call at Treasuries plus 15 bps prior to maturity.
The 2028 tranche features an optional make-whole call at Treasuries plus 20 bps before July 15, 2028; followed by a par call for the last month.
CIBC World Markets Corp., MUFG Securities Americas Inc., RBC Capital Markets, LLC, TD Securities (USA) LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Mizuho Securities USA LLC, Scotia Capital (USA) Inc. and U.S. Bancorp Investments, Inc. are the joint bookrunners.
Proceeds will be used for general corporate purposes.
Williams is an energy infrastructure company based in Tulsa, Okla.
| Issuer: | Williams Cos., Inc.
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| Amount: | $1.25 billion
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| Issue: | Senior notes
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| Bookrunners: | CIBC World Markets Corp., MUFG Securities Americas Inc., RBC Capital Markets, LLC, TD Securities (USA) LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Mizuho Securities USA LLC, Scotia Capital (USA) Inc. and U.S. Bancorp Investments, Inc.
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| Co-managers: | Barclays, BOK Financial Securities, Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, PNC Capital Markets LLC, SMBC Nikko Securities America, Inc., Truist Securities, Inc. and Wells Fargo Securities, LLC
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| Trustee: | Bank of New York Mellon Trust Company, NA
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| Counsel to issuer: | Gibson, Dunn & Crutcher LLP
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| Counsel to bookrunners: | Weil, Gotshal and Manges LLP
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| Pricing date: | Aug. 7
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| Settlement date: | Aug. 10
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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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|
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| 2026 notes
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| Amount: | $350 million
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| Maturity: | March 2, 2026
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| Coupon: | 5.4%
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| Price: | 100.181
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| Yield: | 5.322%
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| Spread: | Treasuries plus 87.5 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps
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| Cusip: | 969457CH1
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| Price talk: | Treasuries plus 110 bps area
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| Total issue: | $1.1 billion, including $750 million issued on March 2
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|
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| 2028 notes
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| Amount: | $900 million
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| Maturity: | Aug. 15, 2028
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| Coupon: | 5.3%
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| Price: | 99.886
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| Yield: | 5.326%
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| Spread: | Treasuries plus 118 bps
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| Call features: | Make-whole call at Treasuries plus 20 bps before July 15, 2028; after at par
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| Cusip: | 969457CK4
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| Price talk: | Treasuries plus 145 bps area
|
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