8-KMaterial AgreementsExhibits & Filings

WILLIAMS COMPANIES, INC. 8-K Report, Material Agreement (Nov 9, 2004)

Filed November 9, 2004For Securities:WMB

Summary

The Williams Companies, Inc. (WMB) filed an 8-K on November 8, 2004, reporting a material definitive agreement entered into on November 5, 2004. This agreement is a Supplemental Remarketing Agreement concerning the company's 6.50% Senior Notes due 2007, originally issued as components of its Income PACS. The agreement details the remarketing of these notes, aiming to reset their interest rates and facilitate their sale at an approximate price of 100.5% of their purchase price for the underlying U.S. Treasury securities, with a floor of 100.0%. Crucially for investors, Williams will not directly receive proceeds from this remarketing. Instead, the proceeds, after deducting the purchase price of Treasury securities and remarketing fees, will be remitted to the Purchase Contract Agent. These funds will then be used for payments to the holders of Income PACS and holders of separately held notes who participate in the remarketing. The company's primary involvement is facilitating the remarketing process through an agreement with Merrill Lynch & Co. as the Remarketing Agent.

Key Highlights

  • 1Williams Companies entered into a Supplemental Remarketing Agreement on November 5, 2004, related to its 6.50% Senior Notes due 2007.
  • 2The agreement's purpose is to remarket and reset the interest rate on these senior notes.
  • 3The remarketing is scheduled for November 10, 2004.
  • 4The target remarketing price is approximately 100.5% of the purchase price of underlying U.S. Treasury securities, with a minimum of 100.0%.
  • 5Williams Companies will not directly receive any proceeds from the remarketing of these notes.
  • 6Proceeds will be directed to the Purchase Contract Agent for distribution to holders of Income PACS and holders of participating separate notes.
  • 7Merrill Lynch & Co. is appointed as the Remarketing Agent for this transaction.

Frequently Asked Questions

The main purpose of the agreement is to remarket and reset the interest rate on The Williams Companies, Inc.'s 6.50% Senior Notes due 2007, which were originally part of its Income PACS structure.

No, The Williams Companies, Inc. will not directly receive any proceeds from the remarketing of these senior notes. The proceeds will be managed by the Purchase Contract Agent for distribution to noteholders.

Merrill Lynch & Co., acting as the Remarketing Agent, is responsible for conducting the remarketing of the notes.

The notes are expected to be remarketed at an aggregate price of approximately 100.5% of the purchase price of the underlying U.S. Treasury securities, but not less than 100.0% of that purchase price.