AGL Capital Corporation Prices Public Offering of $350 Million of Senior Notes
OREANDA-NEWS. AGL Capital Corporation, a wholly owned financing subsidiary of AGL Resources Inc. (NYSE: GAS), priced a registered public offering of an aggregate principal amount of $350 million of senior notes due June 15, 2026 at an interest rate of 3.250%. The senior notes will be guaranteed by AGL Resources. The offering is expected to close on May 18, 2016.
The company estimates that the net proceeds from the offering will be approximately $346 million. The company expects to use approximately $300 million of the net proceeds from the sale of the senior notes to repay its 6.375% senior notes, which will mature on July 15, 2016, and the balance of the net proceeds to repay short-term indebtedness incurred under its commercial paper program and for other general corporate purposes.
J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and U.S. Bancorp Investments, Inc. are the joint book-running managers for the offering.
AGL Resources (NYSE: GAS) is an Atlanta-based energy services holding company with operations in natural gas distribution, retail operations, wholesale services and midstream operations. AGL Resources serves approximately 4.5 million utility customers through its regulated distribution subsidiaries in seven states. The company also serves over 1 million retail customers through its SouthStar Energy Services joint venture and its Pivotal Home Solutions subsidiary, which market natural gas and related home services. Other non-utility businesses include asset management for natural gas wholesale customers through its Sequent Energy Management subsidiary and ownership and operation of natural gas storage facilities. AGL Resources is a Fortune 500 company and member of the S&P 500 Index.
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