Summary
The Williams Companies, Inc. (WMB) filed an 8-K on April 2, 2012, reporting on a significant equity offering that occurred on March 29, 2012. The company successfully priced and sold 26,000,000 shares of its common stock at $30.59 per share. Furthermore, the underwriters exercised their overallotment option to purchase an additional 3,900,000 shares, bringing the total shares sold to 29,900,000. The net proceeds from this offering are earmarked for a strategic purpose: to acquire up to 16,360,133 additional common units of its subsidiary, Williams Partners L.P. (WPZ). This acquisition is in connection with WPZ's planned purchase of Caiman Eastern Midstream, LLC. Any remaining proceeds not used for this acquisition will be allocated to general corporate purposes. The closing of these transactions was expected on April 4, 2012.
Key Highlights
- 1Williams Companies (WMB) completed a public offering of 26,000,000 shares of common stock at $30.59 per share.
- 2Underwriters exercised the overallotment option to purchase an additional 3,900,000 shares, totaling 29,900,000 shares sold.
- 3Net proceeds are intended for the acquisition of WPZ common units to facilitate WPZ's purchase of Caiman Eastern Midstream, LLC.
- 4Proceeds not used for the WPZ unit acquisition will be utilized for general corporate purposes.
- 5The offering and sale of shares were registered under the Securities Act via a Form S-3 registration statement.
- 6Closing of the stock sale was anticipated for April 4, 2012.
- 7The report includes press releases and the underwriting agreement as exhibits.