Summary
Williams Companies, Inc. (WMB) filed an 8-K on May 14, 2020, reporting on the completion of a $1 billion registered offering of 3.500% Senior Notes due 2030. This transaction, finalized on March 14, 2020, was executed under a pre-existing registration statement and a new supplemental indenture. The new notes are senior unsecured obligations of the company, ranking equally with existing senior indebtedness. The issuance will impact WMB's capital structure by increasing its long-term debt. Investors should note the covenants within the indenture, which include restrictions on incurring liens and on mergers or asset sales, as well as standard events of default. The company retains the option to redeem these notes under specific conditions, including a make-whole premium before August 2030 and at par thereafter.
Key Highlights
- 1Completion of a $1 billion registered offering of 3.500% Senior Notes due 2030.
- 2The offering was registered under a Form S-3 registration statement.
- 3The notes are senior unsecured obligations and rank equally with other senior indebtedness.
- 4Interest on the notes will be paid semi-annually in cash, starting November 15, 2020.
- 5The indenture includes covenants restricting the incurrence of liens and significant asset dispositions.
- 6Williams Companies has the option to redeem the notes prior to August 15, 2030, with a make-whole premium.
- 7The company can redeem the notes at par on or after August 15, 2030.