Southwest Gas to separate and spin off subsidiary Centuri Group

Chicago, April 17 – Southwest Gas Holdings, Inc. entered into an agreement with Centuri Holdings, Inc. for the separation of the business, assets and liabilities of Centuri Group Inc., according to an 8-K filing with the Securities and Exchange Commission.

Centuri conducted a roadshow for an initial public offering on April 8. The IPO is expected to close on April 22.

Southwest Gas will still hold a percentage of the outstanding common stock of the new standalone entity.

Proceeds from the equity IPO will be used partially to pay down Centuri’s credit facility. As of Dec. 31, there was $77.1 million outstanding under a revolver due Aug. 27, 2026 and $994.2 million on a term loan due Aug. 27, 2028.

The remaining proceeds of the IPO will be used to pay transaction expenses and for general corporate and working capital purposes.

Based in Phoenix, Centuri is/was the strategic utility infrastructure services business of Southwest Gas.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.