Williams Partners Subsidiary Sells Debt to Pay Off Debt, CapEx

Williams Partners L.P wholly owned subsidiary Transcontinental Gas Pipe Line Company, or Transco, is selling $1 billion in debt to help pay off other debt and help fund capital expenditures. The offering is being made to certain institutional investors in the form of senior notes due 2026.

The specific debt that Transco is paying off is $200 million of 6.40 percent notes due 2016. That maturity date is April 15, 2016.

The new senior notes were priced with a 7.85 percent coupon and at an offering price of 99.825 percent of par, with a yield to investors of 7.875 percent.

Transco did not elaborate on its capital expenditure plan for the rest of the money raised.


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