S&P: Williams unaffected

Standard & Poor's said The Williams Cos. Inc.'s (B+/stable/--) securities exchange to reduce debt by $827 million is favorable for the company's credit quality but is in line with expectations and does not affect the rating or outlook on the company.

Williams announced the final results of its offer to exchange up to 43.9 million of its Feline PACS securities in the form of Income PACS for one share of Williams common stock plus $1.47 in cash for each Income PACS. About 33.1 million Income PACS, or about 75% of the 44 million issued and outstanding Income PACS, have been tendered and should reduce Williams' overall debt by $827 million, according to S&P.

In accordance with the terms of the exchange offer, Williams plans to exchange a total of 33.1 million shares of its common stock and $48.6 million of cash for the accepted Income PACS. In association with the exchange, S&P said the company expects to record an about $25 million pretax charge to earnings in the fourth quarter.

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