A leading master limited partnership,
Williams Partners L.P.
) declared the pricing of senior notes worth $1 billion. The
notes will be issued in two parts - $600 million and $400 million
- in aggregate principal amount.
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The $600 million notes, which are set to mature in 2023, carry an
annual interest rate of 4.500% and are priced at 99.396% of the
principal amount. The $400 million notes are priced at 99.339% of
the principal amount. These notes carry an interest rate of
5.800% and are scheduled to mature in 2043. The partnership
expects the offering to close by Nov 15, 2013 subject to the
fulfillment of customary closing conditions.
Williams Partners plans to use the net proceeds from the offering
to repay amounts outstanding under its commercial paper program,
to fund capital expenditures and for general partnership
Williams Partners is an energy master limited partnership engaged
in gathering, transportation, treating and processing of natural
gas as well as fractionation and storage of NGLs. The partnership
owns interests in three major interstate natural gas pipelines
that, combined, deliver 14% of the natural gas consumed in the
U.S. The partnership's gathering and processing assets include
large-scale operations in the U.S. Rocky Mountains as well as
onshore and offshore Gulf of Mexico. The general partner of the
partnership is owned and managed by
Williams Companies Inc.
Williams Partners retains a Zacks Rank #3, which is equivalent to
a short-term Hold rating. However, there are other stocks in the
oil and gas sector -
SM Energy Company
TransGlobe Energy Corporation
) - which hold a Zacks Rank #1 (Strong Buy) and are expected to