Summary
On January 11, 2022, Atmos Energy Corporation (ATO) entered into an underwriting agreement to issue an additional $200 million in aggregate principal amount of its 2.625% Senior Notes due 2029. This offering is an upsizing of its existing notes of the same series, bringing the total outstanding principal amount to $500 million. The offering is expected to close on or about January 14, 2022. Atmos Energy anticipates receiving net proceeds of approximately $200.7 million after accounting for the underwriting discount and estimated offering expenses. These proceeds will be used for general corporate purposes, which may include funding capital expenditures and refinancing existing debt. This strategic financing move strengthens the company's liquidity and supports its ongoing operational and growth initiatives.
Key Highlights
- 1Atmos Energy priced an additional $200 million of 2.625% Senior Notes due 2029.
- 2The offering represents an increase to the previously issued $300 million of the same notes, bringing the total outstanding to $500 million.
- 3The offering is expected to close around January 14, 2022.
- 4Net proceeds are estimated to be approximately $200.7 million, after underwriting discounts and expenses.
- 5The notes will be issued under an existing indenture, modified by an Officers' Certificate.
- 6The issuance was registered under the Securities Act of 1933 via a Form S-3 registration statement.
- 7Legal opinions from Gibson, Dunn & Crutcher LLP and Hunton Andrews Kurth LLP were filed as exhibits.