Transcontinental Gas Pipe Line Co. LLC priced a private offering of two series of senior notes totaling to $1.0 billion to institutional investors, with net proceeds from the sale to be used to pay down debt.
The offering is composed of $400 million of its senior notes due 2028, priced at 99.446% of par and with a 4% coupon, and $600 million of its senior notes due 2048, priced at 99.276% of par and with a 4.6% coupon. The 2028 notes will yield investors 4.068%, while the 2048 notes will yield 4.645%, according to a March 8 news release.
The Williams Partners LP subsidiary plans to use proceeds from the offering to repay $250 million of 6.05% senior notes due 2018 on their maturity date of June 15. The rest of the proceeds would be used for general corporate purposes such as CapEx funding.
Transco operates a 10,200-mile interstate transmission pipeline system that moves natural gas from South Texas to New York City. Williams Partners operates natural gas infrastructure such as gathering, processing and transportation of gas and NGLs.
