Soon after announcing a 53 million share offering to fund its
Williams Companies Inc.
) has declared pricing of $1.9 billion senior notes for the same.
The North American energy firm announced a two-part offering. The
first part comprises a $1.25 billion offering of 10-year notes,
priced at 99.738% of par and carrying an interest rate of 4.55%.
The second offering of $650 million 30-year notes is priced at
99.773% of par and carries an interest of 5.75%. Williams Companies
anticipates these offerings to close on Jun 24.
The company plans to use the net proceeds from the offering to fund
a part of its recently announced $6 billion acquisition of the 50%
general partner (GP) interest and 55.1 million limited partner (LP)
Access Midstream Partners LP
On Jun 15, Williams Companies announced that it would increase the
GP and LP interests in Access Midstream - a master limited
partnership (MLP) engaged in the midstream business - to 100% and
50%, respectively, by the third quarter. Williams Companies also
stated that it intends to merge the energy infrastructure provider,
Williams Partners LP
) with Access Midstream.
Furthermore, Williams Companies mentioned that the benefits from
the acquisition would be reflected in its third-quarter dividend,
which is expected to increase 32.0% to 56 cents per share. Notably,
the stock has gained nearly 24% since the acquisition.
Tulsa, OK-based Williams Companies is a premier energy
infrastructure provider in North America. At present, Williams
Companies carries a Zacks Rank #3 (Hold), which implies that it is
expected to perform in line with the broader U.S. market in the
next one to three months.
Meanwhile, one can consider a better-ranked player from the same
industry such as
Holly Energy Partners L.P
) that sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
WILLIAMS COS (WMB): Free Stock Analysis Report
WILLIAMS PTNRS (WPZ): Free Stock Analysis
ACCESS MIDSTRM (ACMP): Free Stock Analysis
HOLLY EGY PTNRS (HEP): Free Stock Analysis
To read this article on Zacks.com click here.