What was the main purpose of this 8-K filing?

The main purpose of this 8-K filing was to announce the closing of two significant transactions on March 27, 2002: the sale of Williams' Kern River interstate gas pipeline business and the subsequent sale of $275 million of its convertible preferred stock to a Berkshire Hathaway affiliate.

Who purchased the convertible preferred stock and what is its significance?

MEHC Investment, Inc., a subsidiary of MidAmerican Energy Holdings Company (and thus part of the Berkshire Hathaway group), purchased the $275 million in convertible preferred stock. This is significant as it involves a substantial capital injection from a highly reputable and financially strong entity, potentially indicating confidence in Williams Companies.

What are the terms of the convertible preferred stock sold?

Williams Companies sold 1,466,667 shares of its 9-7/8 percent cumulative convertible preferred stock at a price of $187.50 per share. Each share is convertible into 10 shares of Williams' common stock.

How does the sale of the Kern River pipeline and the preferred stock sale impact Williams Companies?

The sale of the Kern River pipeline represents a divestiture of a major asset, likely to improve the company's financial flexibility and strategic focus. The issuance of preferred stock provides immediate capital, potentially to reduce debt or fund operations. Investors should analyze the net effect on the company's balance sheet and cash flow.

WMB 8-K SEC Disclosure — Mar 28, 2002

Summary

This 8-K filing from The Williams Companies, Inc. (WMB) on March 28, 2002, reports on two significant events that occurred on March 27, 2002. Firstly, Williams successfully closed the sale of its Kern River interstate gas pipeline business. Secondly, immediately following the pipeline sale, Williams completed the sale of $275 million of its 9-7/8 percent cumulative convertible preferred stock to MEHC Investment, Inc., a subsidiary of MidAmerican Energy Holdings Company and a Berkshire Hathaway affiliate. These transactions are crucial for investors as they indicate a significant divestiture of a major asset (Kern River pipeline) and a capital raise through preferred stock issuance. The involvement of Berkshire Hathaway's affiliate in the preferred stock purchase suggests a level of confidence in Williams' financial standing from a reputable entity. Investors should monitor how these capital events impact the company's debt levels, liquidity, and overall strategic direction going forward.

Key Highlights

1Williams Companies closed the sale of its Kern River interstate gas pipeline business.
2Williams Companies sold $275 million of 9-7/8 percent cumulative convertible preferred stock.
3The buyer of the preferred stock is MEHC Investment, Inc., a subsidiary of MidAmerican Energy Holdings Company.
4MidAmerican Energy Holdings Company is a member of the Berkshire Hathaway family of companies.
5MEHC Investment acquired 1,466,667 shares of preferred stock at $187.50 per share.
6Each share of preferred stock is convertible into 10 shares of Williams' common stock.

WILLIAMS COMPANIES, INC. 8-K Report (Mar 28, 2002)

Summary

Key Highlights

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