New Issue: Williams prices $3 billion three-part issue of senior notes

By Aleesia Forni

Virginia Beach, Feb. 26 – The Williams Cos. Inc. sold a $3 billion three-tranche offering of senior notes (Baa2/BBB/BBB) during the session on Thursday, according to a market source and a FWP filed with the Securities and Exchange Commission.

There was $1.25 billion of 3.6% notes due 2022 priced at 99.968 to yield 3.605%, or with a spread of Treasuries plus 175 bps.

The notes sold at the tight end of talk set in the 180 bps area. Guidance was set in the 190 bps area over Treasuries.

A $750 million tranche of 4% notes due 2025 sold at 99.675 to yield 4.038%, or at Treasuries plus 200 bps.

Pricing was at the tight end of the 205 bps area talk which had firmed from guidance of 210 bps to 215 bps over Treasuries.

Finally, $1 billion of 5.1% notes due 2045 sold at 99.522 to yield 5.131%, or Treasuries plus 250 bps.

The notes sold at the tight end of the 255 bps area talk, which tightened from initial guidance set in the 260 bps area.

The bookrunners were Barclays, BofA Merrill Lynch, Wells Fargo Securities, LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBC Capital Markets, LLC.

Proceeds will be used to repay amounts outstanding under the company’s commercial paper program, to fund capital expenditures and for general partnership purposes.

Tulsa, Okla.-based Williams finds, produces, gathers, processes and transports natural gas.

Issuer:	Williams Cos. Inc.
Issue:	Senior notes
Amount:	$3 billion
Bookrunners:	Barclays, BofA Merrill Lynch, Wells Fargo Securities, LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBC Capital Markets, LLC
Senior co-managers:	BBVA Securities Inc., DNB Markets, Inc., MUFG, Mizuho Securities (USA) Inc., SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc.
Co-managers:	BOSC, Inc., TD Securities (USA) LLC, PNC Capital Markets LLC
Trade date:	Feb. 26
Settlement date:	March 3
Ratings:	Moody’s: Baa2
	Standard & Poor’s: BBB
	Fitch: BBB
Distribution:	SEC-registered
Seven-year notes
Amount:	$1.25 billion
Maturity:	March 15, 2022
Coupon:	3.6%
Price:	99.968
Yield:	3.605%
Spread:	175 bps
Price talk:	180 bps area, tightened from 190 bps area
Make-whole call:	30 bps prior to Jan. 15, 2022, then callable at par
10-year notes
Amount:	$750 million
Maturity:	Sept. 15, 2025
Coupon:	4%
Price:	99.675
Yield:	4.038%
Spread:	200 bps
Price talk:	205 bps area, tightened from 210 bps to 215 bps
Make-whole call:	30 bps prior to June 15, 2025, then callable at par
30-year bonds
Amount:	$1 billion
Maturity:	Sept. 15, 2045
Coupon:	5.1%
Price:	99.522
Yield:	5.131%
Spread:	250 bps
Price talk:	255 bps area, tightened from 260 bps area
Make-whole call:	40 bps prior to March 15, 2045, then callable at par

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