Summary
On October 15, 2014, Atmos Energy Corporation (ATO) successfully completed a public offering of $500 million in aggregate principal amount of 4.125% Senior Notes due 2044. The company received net proceeds of approximately $494 million after accounting for underwriting discounts and offering expenses. These unsecured notes rank equally with existing and future senior indebtedness of Atmos Energy and mature on October 15, 2044. This offering was registered under the Securities Act of 1933, utilizing a previously filed registration statement. The proceeds from this debt issuance will likely be used for general corporate purposes, which could include funding capital expenditures and refinancing existing debt. Investors should note that the indenture governing these notes contains covenants that place certain restrictions on the company and its subsidiaries, such as limitations on granting liens, engaging in sale and leaseback transactions, and mergers or consolidations.
Key Highlights
- 1Atmos Energy issued $500 million in 4.125% Senior Notes due 2044.
- 2Net proceeds from the offering were approximately $494 million.
- 3The notes are unsecured and rank equally with other senior indebtedness.
- 4The notes mature on October 15, 2044.
- 5The offering was registered under the Securities Act of 1933 on Form S-3.
- 6The indenture includes covenants restricting certain corporate actions like liens, sale and leaseback transactions, and mergers.
- 7Events of default are defined, including payment defaults, covenant breaches, and bankruptcy.