Summary
The Williams Companies, Inc. (WMB) announced on March 2, 2021, the completion of a registered offering of $900 million in aggregate principal amount of 2.600% Senior Notes due 2031. This offering was made under a registration statement and prospectus supplement filed with the SEC, utilizing an Indenture agreement with The Bank of New York Mellon Trust Company, N.A. These senior unsecured notes represent a significant capital raise for the company, which will bear interest semi-annually at a fixed rate of 2.600% until maturity in 2031. The notes are subject to customary covenants restricting liens, mergers, and asset disposals, as well as standard events of default. The company retains the option to redeem the notes early under specific conditions, including a make-whole premium before December 15, 2030, and at par thereafter.
Key Highlights
- 1Completion of a $900 million registered offering of 2.600% Senior Notes due 2031.
- 2The offering was registered under the Securities Act of 1933 via Form S-3.
- 3The Notes are senior unsecured obligations of the Company, ranking equally with other senior indebtedness.
- 4Interest payments are semi-annual, fixed at 2.600% per annum, payable on March 15 and September 15.
- 5The Indenture includes covenants restricting liens and significant asset disposals.
- 6The Company has the option to redeem the Notes prior to maturity, with a 'make-whole' premium or at par after December 15, 2030.