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 November 16, 2015 - 7:59 AM EST
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AGL Capital Corporation Announces Public Offering of $250 Million of Senior Notes

ATLANTA, November 16, 2015 -- AGL Capital Corporation, a wholly owned financing subsidiary of AGL Resources Inc. (NYSE: GAS), announced a registered public offering of an aggregate principal amount of $250 million of senior notes due November 15, 2025 at an interest rate of 3.875%. The senior notes will be guaranteed by AGL Resources.  The offering is expected to close on November 18, 2015.

The company estimates that the net proceeds from the offering will be approximately $248 million.  The company expects to use approximately $200 million of the net proceeds from the sale of the senior notes to repay short-term indebtedness incurred under its commercial paper program. The company used $200 million of funds from its commercial paper program to repay its 4.95% senior notes that matured on January 15, 2015. The balance of the net proceeds will be used for general corporate purposes, including capital expenditures associated with increased utility investment and construction of AGL Resources' new pipeline projects.

Mitsubishi UFJ Securities (USA), Inc., SunTrust Robinson Humphrey, Inc., Wells Fargo Securities, LLC, and Morgan Stanley & Co. LLC are the joint book-running managers for the offering.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities. Any such offer will be made only by means of a prospectus and an accompanying prospectus supplement. Potential investors should read the prospectus, prospectus supplement and documents incorporated by reference therein carefully before making any investment decision. Copies of these documents are available for free on the internet at http://www.sec.gov/. Alternatively, you may obtain copies of the prospectus and prospectus supplement by calling Mitsubishi UFJ Securities (USA), Inc. toll free at 1-877-649-6848, SunTrust Robinson Humphrey, Inc. toll free at 1-800-685-4786 or Wells Fargo Securities, LLC toll free at 1-800-645-3751.

About AGL Resources

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.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements include, without limitation, statements regarding the amount and expected use of proceeds of the senior notes offering and the expected closing date of the offering.  Although AGL Resources and AGL Capital believe these statements to be reasonable in view of the currently available information, there are a number of factors - many beyond the control of AGL Resources and AGL Capital - that could cause results to differ materially from these statements. These events, risks and uncertainties include general market conditions, the possibility that the conditions to closing the senior notes offering will not be satisfied or waived, unforeseen events that may necessitate the application of the net proceeds of the senior notes offering to other, more critical purposes. Events, risks and uncertainties which may cause actual events to differ materially from expectations also include, but are not limited to: (1) certain risks and uncertainties associated with the proposed merger of AGL Resources with The Southern Company, including, without limitation, (i) the possibility that the proposed merger does not close due to the failure to satisfy the closing conditions, including, but not limited to, a failure of AGL Resources' shareholders to approve the merger agreement or a failure to obtain the required regulatory approvals; (ii) delays caused by required regulatory approvals, which may delay the proposed merger or cause the companies to abandon the transaction;  (iii) disruption from the proposed merger making it more difficult to maintain AGL Resources' business and operational relationships as well as maintaining AGL Resources' relationships with employees, suppliers and customers, and the risk that unexpected costs will be incurred during this process; (iv) the diversion of AGL Resources' management time on merger-related issues; (v) pending AGL Resources' shareholder suits which could delay or prevent the closing of the merger or otherwise adversely impact AGL Resources' business and operations; and (vi) the resulting change in control of AGL Resources following the effective time of the merger; (2) changes in price, supply and demand for natural gas and related products; (3) the impact of changes in state and federal legislation and regulation including any changes related to climate matters; (4) actions taken by government agencies on rates and other matters; (5) concentration of credit risk; (6) utility and energy industry consolidation; (7) the impact on cost and timeliness of construction projects by government and other approvals, project delays, adequacy of supply of diversified vendors, and unexpected change in project costs, including the cost of funds to finance these projects and AGL Resources' ability to recover project costs from customers; (8) limits on pipeline capacity; (9) the impact of acquisitions and divestitures; (10) AGL Resources' ability to successfully integrate operations that it has or may acquire or develop in the future; (11) direct or indirect effects on AGL Resources' business, financial condition or liquidity resulting from any change in AGL Resources' credit ratings, or any change in the credit ratings of AGL Resources' counterparties or competitors; (12) interest rate fluctuations; (13) financial market conditions, including disruptions in the capital markets and lending environment; (14) general economic conditions; (15) uncertainties about environmental issues and the related impact of such issues, including AGL Resources' environmental remediation plans; (16) the capacity of AGL Resources' gas storage caverns, which are subject to natural settling and other occurrences; (17) contracting rates at AGL Resources' midstream operations storage business; (18) the impact of AGL Resources' construction projects and related capital expenditures, including AGL Resources' pipeline projects; (19) the development, timing and anticipated costs relating to AGL Resources' pipeline projects; (20) the impact of changes in weather, including climate change, on the temperature-sensitive portions of AGL Resources' business; (21) the impact of natural disasters, such as hurricanes, on the supply and price of natural gas; (22) acts of war or terrorism; (23) the outcome of litigation; (24) the effect of accounting pronouncements issued periodically by standard-setting bodies; and (25) the matters set forth in the "Risk Factors" section and the narrative regarding forward-looking statements in AGL Resources' Annual Report on Form 10-K for the year ended December 31, 2014 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 and subsequent filings with the Securities and Exchange Commission. Forward-looking statements are only as of the date they are made and AGL Resources and AGL Capital do not undertake to update these statements to reflect subsequent changes.

SOURCE:  AGL Resources Inc.

Contacts:       

Financial
Sarah Stashak
Director, Investor Relations
Office: 404-584-4577
sstashak@aglresources.com

Media
Kristie Swink Benson, APR
Director, PR & Media Relations
Office: 404-584-3167
kbenson@aglresources.com





This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: AGL Resources via Globenewswire

HUG#1966921

Source: Thomson Reuters ONE (November 16, 2015 - 7:59 AM EST)

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