By Lisa Kerner
Charlotte, N.C., Aug. 12 - UNS Gas, Inc. issued $50 million of 5.39% senior guaranteed notes due Aug. 10, 2026 on Aug. 8.
The notes are guaranteed by UniSource Energy Services, Inc., according to an 8-K filing with the Securities and Exchange Commission.
The notes have a make-whole call at Treasuries plus 50 basis points.
Proceeds were used to pay in full UNS Gas' $50 million of 6.23% notes that matured on Thursday.
The 5.39% notes were issued under a May 4 note purchase agreement. Under the agreement, UNS Gas and certain subsidiaries must adhere to restrictive covenants that include having a ratio of consolidated long-term debt to consolidated total capitalization of no greater that 0.65 to 1.00 and an interest coverage ratio of at least 2.50 to 1.00.
Purchasers include Metropolitan Life Insurance Co., C.M. Life Insurance Co., Massachusetts Mutual Life Insurance Co., Thrivent Financial for Lutherans, Great-West Life & Annuity Insurance Co. and John Hancock Insurance Co. (U.S.A.).
UniSource is a Norcross, Ga.-based provider of customer solutions, including engineered design capabilities, eBusiness technologies, logistics expertise, paper brokerage services and environmentally responsible options, and a marketer of commercial printing and business imaging papers, packaging materials and systems, and facility supplies and equipment.
| Issuer: | UNS Gas, Inc.
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| Guarantor: | UniSource Energy Services, Inc.
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| Issue: | Senior guaranteed notes
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| Amount: | $50 million
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| Maturity: | Aug. 10, 2026
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| Coupon: | 5.49%
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| Call option: | Make-whole at Treasuries plus 50 bps
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| Pricing date: | May 4
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| Settlement date: | Aug. 8
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| Distribution: | Private placement
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| Purchasers: | Metropolitan Life Insurance Co., C.M. Life Insurance Co., Massachusetts Mutual Life Insurance Co., Thrivent Financial for Lutherans, Great-West Life & Annuity Insurance Co., John Hancock Insurance Co. (U.S.A.)
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