By Andrea Heisinger
New York, Dec. 13 - Williams Cos. Inc. priced $850 million of 3.7% 10-year senior notes (Baa3/BBB-/BBB-) on Thursday to yield Treasuries plus 200 basis points, an informed source said.
Pricing was at 99.722 to yield 3.733%. There's a make-whole call at Treasuries plus 30 bps until Oct. 15, 2022 and a par call after that date.
Bookrunners were Barclays, Citigroup Global Markets Inc. and UBS Securities LLC.
Proceeds will be used, along with borrowings under a revolving credit facility and bridge facility if needed, to fund consideration for the investment in equity interest of Access Midstream Partners LP.
There is a mandatory call at 101 if the investment is not closed by May 15, 2013.
Williams last tapped the U.S. bond market in a $600 million split-rated sale of 8.75% 11-year notes priced at Treasuries plus 590.5 bps on Feb. 26, 2009.
Tulsa, Okla.-based Williams finds, produces, gathers, processes and transports natural gas.
| Issuer: | Williams Cos. Inc.
|
| Issue: | Senior notes
|
| Amount: | $850 million
|
| Maturity: | Jan. 15, 2023
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., UBS Securities LLC
|
| Co-managers: | BOSC, Inc., DNB Markets, Inc., Mitsubishi UFJ Securities (USA) Inc., Mizuho Securities USA Inc., SMBC Nikko Capital Markets Ltd., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc.
|
| Coupon: | 3.7%
|
| Price: | 99.722
|
| Yield: | 3.733%
|
| Spread: | Treasuries plus 200 bps
|
| Call: | Make-whole at Treasuries plus 30 bps to Oct. 15, 2022, par call after
|
| Trade date: | Dec. 13
|
| Settlement date: | Dec. 18
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
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