Southwest Gas Corp. commenced an offering of $300 million of its 3.70% senior notes due 2028, with most of the proceeds to be used to repay debt under its revolving credit facility in full.
The notes have a maturity date of April 1, 2028, with interest payments occurring semi-annually on April 1 and Oct. 1 of each year until the maturity date starting Oct. 1, according to a March 12 prospectus.
Southwest Gas expects the offering to yield net proceeds of $297.5 million, after underwriting discounts and other expenses, of which about $282 million would be allocated for revolver debt repayment. The rest would be used to pay down debt under the company's commercial paper program.
KeyBanc Capital Markets Inc., MUFG Securities Americas Inc. and U.S. Bancorp Investments Inc. are acting as joint book-running managers for the offering.
