Williams prices $2.75 billion senior notes offering across four tranches
The energy infrastructure company priced senior notes due between 2029 and 2056, with the offering expected to close Sept. 10.
The Williams Companies, Inc. (WMB) priced an underwritten public offering of $2.75 billion aggregate principal amount of senior notes across four tranches, according to a regulatory filing Monday.
Key takeaways
- The offering totals $2.75 billion across four tranches of senior notes.
- Notes mature in 2029, 2033, 2036, and 2056.
- Proceeds will repay commercial paper and fund capital expenditures.
- The expected settlement date is Sept. 10.
Note terms and tranches
The offering includes $500 million of 5.000% senior notes due 2029 priced at 99.31 percent of par, $1.0 billion of 5.600% senior notes due 2033 priced at 99.999 percent of par, $750 million of 5.800% senior notes due 2036 priced at 99.819 percent of par, and $500 million of 6.400% senior notes due 2056 priced at 99.800 percent of par, according to the press release.
The notes will be issued under an indenture dated Dec. 18, 2012, between the company and The Bank of New York Mellon Trust Company, N.A., as trustee, as supplemented by a fourteenth supplemental indenture dated Sept. 10.
Use of proceeds and underwriters
The company said it intends to use the net proceeds from the offering to repay outstanding commercial paper and for other general corporate purposes, including funding capital expenditures.
Citigroup Global Markets Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, and SMBC Nikko Securities America, Inc. acted as joint book-running managers for the offering.
Why it matters
The multi-tranche debt offering provides capital across short-, medium-, and long-term maturities while extending the company's debt profile. By using a portion of the proceeds to pay down commercial paper, the company shifts short-term obligations into fixed-rate senior notes.
By the numbers
| Metric | Value | Source |
|---|---|---|
| 2029 Notes Principal | $500 million | Press Release |
| 2029 Notes Coupon | 5.000% | Press Release |
| 2033 Notes Principal | $1.0 billion | Press Release |
| 2033 Notes Coupon | 5.600% | Press Release |
| 2036 Notes Principal | $750 million | Press Release |
| 2036 Notes Coupon | 5.800% | Press Release |
| 2056 Notes Principal | $500 million | Press Release |
| 2056 Notes Coupon | 6.400% | Press Release |
Closing conditions and timeline
The offering was registered under the Securities Act pursuant to a registration statement on Form S-3 and a prospectus supplement filed with the Securities and Exchange Commission.
The transaction is expected to close on Sept. 10, subject to the satisfaction of customary closing conditions. Legal counsel Gibson, Dunn & Crutcher LLP provided an opinion on the offering.