By Andrea Heisinger
New York, Sept. 15 - AGL Capital Corp. sold $500 million of new and reopened senior debt (Baa1/BBB-/A-) on Thursday, a source who worked on the deal said.
A $400 million tranche of 3.5% 10-year notes was priced at 98.483 to yield 3.683% with a spread of 160 basis points over Treasuries.
AGL also reopened its 5.875% notes due 2041 to add $100 million. The notes were priced at 113.434 to yield 4.993% with a spread of Treasuries plus 165 bps.
Total issuance is $600 million, including $500 million of paper priced on March 16 at 150 bps over Treasuries.
Both of the notes have a make-whole call at Treasuries plus 25 bps.
Goldman Sachs & Co., Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC were the active bookrunners. The passive bookrunner was Bank of America Merrill Lynch.
Co-managers were Credit Agricole CIB, Deutsche Bank Securities Inc., Mitsubishi UFJ Securities (USA) Inc., RBS Securities Inc., Scotia Capital USA Inc. and U.S. Bancorp Investments Inc.
Proceeds will be partially used to pay the cash consideration and expenses for the merger with natural gas distributor Nicor Inc., to repay short-term debt used for such purposes or for general corporate purposes.
The notes are guaranteed by AGL Resources Inc.
The finance arm of energy services holding company AGL is based in Atlanta.
| Issuer: | AGL Capital Corp.
|
| Guarantor: | AGL Resources Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Bookrunners: | Goldman Sachs & Co., Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC (active), Bank of America Merrill Lynch (passive)
|
| Co-managers: | Credit Agricole CIB, Deutsche Bank Securities Inc., Mitsubishi UFJ Securities (USA) Inc., RBS Securities Inc., Scotia Capital USA Inc., U.S. Bancorp Investments Inc.
|
| Trade date: | Sept. 15
|
| Settlement date: | Sept. 20
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB-
|
| Fitch: A-
|
|
|
| 10-year notes
|
| Amount: | $400 million
|
| Maturity: | Sept. 15, 2021
|
| Coupon: | 3.5%
|
| Price: | 98.483
|
| Yield: | 3.683%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
|
|
| Notes due 2041
|
| Amount: | $100 million
|
| Maturity: | March 15, 2041
|
| Coupon: | 5.875%
|
| Price: | 113.434
|
| Yield: | 4.993%
|
| Spread: | Treasuries plus 165 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Total issuance: | $600 million, including $500 million in notes priced on March 16 at 150 bps
|
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