Summary
Atmos Energy Corporation (ATO) filed an 8-K on March 28, 2016, to announce the entry into an Equity Distribution Agreement with Goldman, Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Morgan Stanley & Co. LLC. This agreement allows Atmos Energy to offer and sell shares of its common stock, up to an aggregate offering price of $200 million, from time to time through these financial institutions acting as sales agents. The shares will be sold through ordinary brokerage transactions on the New York Stock Exchange at market prices, or through other agreed-upon methods. Atmos Energy has the flexibility to determine when and if to sell shares and can suspend sales at any time. This facility provides a mechanism for the company to potentially raise capital through equity issuance, with the managers earning a 1.0% commission on gross proceeds from sales made through them. The offering is being made under an automatic shelf registration statement filed concurrently with this report.
Key Highlights
- 1Atmos Energy entered into an Equity Distribution Agreement to potentially sell up to $200 million of its common stock.
- 2The agreement designates Goldman Sachs, Merrill Lynch, and Morgan Stanley as sales agents for the offering.
- 3Sales will be conducted through the NYSE at market prices or other agreed-upon methods.
- 4The company retains the flexibility to suspend or terminate sales at any time.
- 5Sales agents will receive a commission of 1.0% on gross proceeds from shares sold through them.
- 6The offering is registered under an automatic shelf registration statement filed on Form S-3.
- 7The filing also includes legal opinions and consents related to the equity distribution agreement.