Summary
On June 7, 2011, Atmos Energy Corporation (ATO) announced the successful completion of an underwritten public offering of $400 million in aggregate principal amount of its 5.50% Senior Notes due 2041. The offering, which was registered under the Securities Act of 1933, is expected to close on June 10, 2011. The company anticipates receiving net proceeds of approximately $394 million after accounting for the underwriting discount and estimated offering expenses. This debt issuance indicates Atmos Energy's strategy to raise capital, likely for general corporate purposes, refinancing existing debt, or funding capital expenditures. Investors should note the specific terms of the notes, including their maturity date and interest rate, as well as the effective yield considering the settlement of Treasury lock agreements. The filing also includes various exhibits detailing the underwriting agreement, the form of the officers' certificate, and legal opinions.
Key Highlights
- 1Atmos Energy successfully priced a $400 million offering of 5.50% Senior Notes due 2041.
- 2The offering was conducted as an underwritten public offering.
- 3Net proceeds from the offering are estimated to be approximately $394 million.
- 4The notes have a stated interest rate of 5.50% and a yield to maturity of 5.522%.
- 5The offering is expected to close on June 10, 2011, subject to customary conditions.
- 6The issuance was registered under the Securities Act of 1933 via a Form S-3 registration statement.
- 7Relevant legal opinions and consents from Gibson, Dunn & Crutcher LLP and Hunton & Williams LLP are filed as exhibits.