S&P: Williams tender positive

Standard & Poor's said Thursday that it views The Williams Cos. Inc.'s (B+/negative/--) cash tender offer for $1.169 billion in notes as a credit positive.

However, the tender offer falls within S&P's expectations that Williams would use excess cash available to prepay debt maturities. Therefore, the rating remains unchanged.

As of the early tender date of May 19, noteholders had tendered $87.8 million of Williams' 6.625% notes due Nov. 15, 2004 and $1.079 billion of outstanding notes maturing in 2006 through 2009. Williams purchased the notes to enhance its balance sheet by decreasing debt and reducing annual interest expense.

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