Summary
Atmos Energy Corporation (ATO) has entered into an Equity Distribution Agreement with various managers and forward purchasers, establishing a facility to offer and sell shares of its common stock up to an aggregate offering price of $1.0 billion. This agreement allows for the sale of shares through the New York Stock Exchange via ordinary brokerage transactions, block transactions, or other agreed-upon methods. The company may also sell shares directly to a manager as principal. This offering is being conducted under an existing automatic shelf registration statement filed in June 2021. The agreement also incorporates forward sale agreements. Under these arrangements, forward purchasers will borrow and sell shares of Atmos Energy's common stock to hedge their positions. Atmos Energy expects to receive proceeds from these forward sales upon future physical settlement, though alternative settlement methods exist that may result in the company receiving no proceeds or even owing cash or shares. The fees associated with these arrangements are structured as commissions.
Key Highlights
- 1Atmos Energy established a $1.0 billion at-the-market equity offering program.
- 2Shares will be sold through the New York Stock Exchange at market prices, via brokers or block transactions.
- 3The offering includes the potential use of forward sale agreements, allowing for future share delivery.
- 4Forward purchasers will borrow shares to hedge forward sales, with Atmos Energy potentially receiving proceeds upon settlement.
- 5The company has no obligation to sell any shares and can suspend the offering at any time.
- 6Sales agents (Managers) will receive a commission of 1.00% of the gross offering proceeds.
- 7The offering is registered under Atmos Energy's existing Form S-3 shelf registration statement filed on June 29, 2021.