Summary
Williams Companies, Inc. (WMB) subsidiary, Transcontinental Gas Pipe Line Company, LLC (Transco), successfully completed a private placement of $1 billion in senior notes. This offering comprises $400 million of 4.000% Senior Notes due 2028 and $600 million of 4.600% Senior Notes due 2048. The notes are unsecured obligations and rank equally with other senior unsecured debt of Transco. This transaction is primarily an opportunistic financing aimed at refinancing existing debt or funding general corporate purposes. The company has agreed to register these notes with the SEC within 365 days through an exchange offer, which is a standard provision to provide liquidity to private placement investors. While the notes bear interest at fixed rates, investors should note the potential for early redemption at a "make whole" premium, and standard covenants restricting liens and major corporate actions.
Key Highlights
- 1Transcontinental Gas Pipe Line Company, LLC, a subsidiary of Williams Partners L.P., issued $1 billion in senior notes.
- 2The offering consists of $400 million of 4.000% Senior Notes due 2028 and $600 million of 4.600% Senior Notes due 2048.
- 3The notes were issued in a private placement under Rule 144A and Regulation S.
- 4The notes are senior unsecured obligations of Transco, ranking pari passu with existing and future senior unsecured indebtedness.
- 5The company has agreed to conduct an exchange offer within 365 days to register the notes for public resale.
- 6The Indenture includes covenants restricting the granting of liens and significant corporate transactions.
- 7The issuance was completed on March 15, 2018.