8-KMaterial AgreementsExhibits & Filings

ATMOS ENERGY CORP 8-K Report, Material Agreement (Jun 13, 2011)

Filed June 13, 2011For Securities:ATO

Summary

Atmos Energy Corporation (ATO) has filed an 8-K report detailing the completion of a public offering of $400 million in aggregate principal amount of 5.50% Senior Notes due 2041. The company secured approximately $394 million in net proceeds from this offering, after accounting for underwriting discounts and estimated expenses. These notes represent unsecured senior indebtedness and are set to mature on June 15, 2041, with interest payments due semi-annually beginning December 15, 2011. The offering was registered under the Securities Act of 1933 and executed through an indenture that includes covenants restricting Atmos Energy and its subsidiaries from engaging in certain activities, such as creating specific liens, participating in certain sale and leaseback transactions, merging with other companies, or selling substantially all assets. The indenture also outlines events of default, which, if triggered, could lead to the immediate acceleration of the notes' maturity.

Key Highlights

  • 1Completion of a $400 million public offering of 5.50% Senior Notes due 2041.
  • 2Net proceeds of approximately $394 million received from the offering.
  • 3The new notes are unsecured senior obligations of Atmos Energy.
  • 4Maturity date for the notes is June 15, 2041.
  • 5Interest rate on the notes is 5.50% per annum, payable semi-annually.
  • 6The offering was registered under the Securities Act of 1933.
  • 7Indenture includes covenants that restrict certain corporate actions, such as lien creation and asset sales.

Frequently Asked Questions

This 8-K filing announces the completion of Atmos Energy Corporation's public offering of $400 million in 5.50% Senior Notes due 2041. It provides details about the terms of the offering, the net proceeds received, and the covenants associated with the new debt.

The 8-K filing does not explicitly state the intended use of the net proceeds. However, typically, proceeds from such debt offerings are used for general corporate purposes, capital expenditures, refinancing existing debt, or other strategic initiatives.

The notes have a principal amount of $400 million, mature on June 15, 2041, and carry a fixed interest rate of 5.50% per annum, payable semi-annually. They are unsecured senior obligations of the company.

The indenture includes covenants that limit Atmos Energy and its restricted subsidiaries' ability to create certain liens, engage in specified sale and leaseback transactions, consolidate or merge with other companies, or sell all or substantially all of its assets. These restrictions are subject to exceptions and qualifications outlined in the indenture.