By Aleesia Forni
Virginia Beach, June 19 – Williams Cos. Inc. priced $1.9 billion of senior notes (Baa3/BB+/BBB-) in two tranches on Thursday, according to a market source.
The sale included $1.25 billion of 4.55% 10-year notes priced at 99.738 to yield 4.583%, or Treasuries plus 195 basis points.
A second tranche was $650 million of 5.75% 30-year bonds, which sold at 99.773 to yield 5.766%, or Treasuries plus 230 bps.
Both tranches sold at the tight end of talk.
The 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 the investment in equity interest of Access Midstream Partners LP.
Tulsa, Okla.-based Williams finds, produces, gathers, processes and transports natural gas.
| Issuer: | Williams Cos. Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.9 billion
|
| Joint bookrunners: | Barclays, Citigroup Global Markets Inc., UBS Securities LLC
|
| Trade date: | June 19
|
| Settlement date: | June 24
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BB+
|
| Fitch: BBB-
|
| Distribution: | SEC-registered
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | June 24, 2024
|
| Coupon: | 4.55%
|
| Price: | 99.738
|
| Yield: | 4.583%
|
| Spread: | Treasuries plus 195 bps
|
| Price talk: | Treasuries plus 200 bps, tightened from Treasuries plus 220 basis points area
|
| Make-whole call: | Treasuries plus 30 bps prior to March 24, 2024, then callable at par
|
|
|
| 30-year bonds
|
| Amount: | $650 million
|
| Maturity: | June 24, 2044
|
| Coupon: | 5.75%
|
| Price: | 99.773
|
| Yield: | 5.766%
|
| Spread: | Treasuries plus 230 bps
|
| Price talk: | Treasuries plus 235 bps area, tightened from Treasuries plus 265 bps area
|
| Make-whole call: | Treasuries plus 35 bps prior to Dec. 24, 2043, then callable at par
|
|
|
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