Summary
The Williams Companies, Inc. (WMB) reported on March 19, 2002, the successful closure of a significant two-part debt financing transaction totaling $1.5 billion. This issuance consisted of $850 million in 30-year notes bearing an 8.75% interest rate and $650 million in 10-year notes with an 8.125% interest rate. The company intends to utilize the net proceeds from this private placement to address its outstanding short-term debt obligations, bolster working capital, and fund general corporate activities.
Key Highlights
- 1Williams Companies closed a $1.5 billion debt issuance on March 19, 2002.
- 2The debt issuance was comprised of two tranches: $850 million in 30-year notes and $650 million in 10-year notes.
- 3The 30-year notes carry an interest rate of 8.75%.
- 4The 10-year notes carry an interest rate of 8.125%.
- 5Proceeds will be used to repay short-term debt.
- 6Funds will also be allocated to working capital and general corporate purposes.
- 7The transaction was conducted as a private placement.