8-KOther Events

WILLIAMS COMPANIES, INC. 8-K Report (Apr 1, 2002)

Filed April 1, 2002For Securities:WMB

Summary

The Williams Companies, Inc. (WMB) filed an 8-K on April 1, 2002, reporting a significant financial transaction dated March 29, 2002. The company paid $753 million to its subsidiary, Williams Communications Group, Inc. (WCGR), to facilitate WCGR's purchase of telecommunications facilities it had been leasing. In exchange for this payment, Williams Companies, Inc. received an unsecured debt instrument from WCGR for the same amount. This transaction effectively transfers ownership of these leased assets to WCGR, with WMB holding a debt obligation from its subsidiary.

Key Highlights

  • 1Williams Companies, Inc. (WMB) paid $753 million on March 29, 2002.
  • 2The payment was made to Williams Communications Group, Inc. (WCGR).
  • 3The funds were used by WCGR to purchase telecommunications facilities.
  • 4These facilities were previously leased by WCGR.
  • 5Williams Companies, Inc. received an unsecured debt instrument from WCGR valued at $753 million in return.
  • 6This transaction impacts the financial relationship and asset ownership between WMB and its subsidiary WCGR.

Frequently Asked Questions

The primary purpose was to enable Williams Communications Group, Inc. (WCGR) to purchase certain telecommunications facilities that WCGR had been leasing. This transaction shifted the ownership of these assets to WCGR.

In exchange for the payment, Williams Companies, Inc. received an unsecured debt instrument from Williams Communications Group, Inc. (WCGR) for the same amount, $753 million. This means WCGR owes this amount to WMB.

This transaction formalizes the ownership of the telecommunications facilities by WCGR and creates a significant intercompany debt obligation. For WMB, it represents a substantial investment in its subsidiary's assets, offset by a debt receivable. For WCGR, it involves acquiring assets and taking on a significant debt to its parent company.

No, the filing explicitly states that Williams Companies, Inc. received an instrument of unsecured debt from WCGR. This means the debt is not backed by specific collateral.