8-KMaterial AgreementsExhibits & Filings

ATMOS ENERGY CORP 8-K Report, Material Agreement (Mar 4, 2019)

Filed March 4, 2019For Securities:ATO

Summary

Atmos Energy Corporation (ATO) announced on March 4, 2019, the successful completion of a public offering for $450 million in aggregate principal amount of 4.125% Senior Notes due 2049. The company received net proceeds of approximately $443 million from this offering, which was registered under the Securities Act of 1933. These notes are unsecured and rank equally with existing and future senior indebtedness of Atmos Energy. This issuance represents a significant financing event for Atmos Energy, likely intended to fund its ongoing capital expenditures, operational needs, or refinance existing debt. Investors should note the long-term nature of these notes, maturing in 30 years, and the fixed interest rate of 4.125%. The indenture governing the notes includes standard covenants that restrict certain corporate actions, such as granting liens or engaging in sale and leaseback transactions, and provides for events of default.

Key Highlights

  • 1Atmos Energy completed a public offering of $450 million of 4.125% Senior Notes due 2049.
  • 2The company received net proceeds of approximately $443 million from the offering.
  • 3The notes bear a fixed interest rate of 4.125% and mature on March 15, 2049.
  • 4The notes are unsecured and rank equally with existing and future senior indebtedness.
  • 5The indenture includes covenants that limit certain corporate actions and provide for events of default.
  • 6The offering was registered under the Securities Act of 1933.

Frequently Asked Questions

The filing does not explicitly state the exact use of proceeds. However, for a company like Atmos Energy, such long-term debt issuances are typically used to fund capital expenditures, support ongoing operations, refinance existing debt, or for general corporate purposes.

The 4.125% fixed interest rate provides Atmos Energy with certainty regarding its interest expense on this portion of its debt. The long maturity of 30 years (due 2049) suggests a long-term financing strategy, reducing the need for frequent refinancing and providing capital stability over an extended period.

The indenture contains covenants that restrict Atmos Energy and its subsidiaries from, among other things, granting certain liens, engaging in sale and leaseback transactions, consolidating or merging with other companies, or selling substantially all of its assets without meeting specific conditions outlined in the indenture.

These 4.125% Senior Notes are unsecured and rank equally with all of Atmos Energy's existing and future senior indebtedness. They are senior in payment priority over any future debt that is subordinated to these notes.