Finance - News
The net proceeds of about $1.88 billion were used to purchase newly issued common units representing limited partnership interests in Williams Partners LP. The units were priced at about $36 each.
The net proceeds—about $1.48 billion–will refinance current maturities and repay outstanding revolving credit facility borrowings, the company said.
The net proceeds will be used to prepay the remaining balance of NII's unsecured term loan, which matures in 2020, and to pay the cost of the capped call transaction. Any remainder will support general corporate purposes.
Underwriters received a 30-day option to purchase 9.75 million additional shares, and the offering is scheduled to close on Jan. 13.
The bonds, which include notes maturing in Jan. 2019, March 2019, April 2019, Jan. 2020 and March 2020, have almost $10 billion outstanding worth of securities, Reuters reported.
The selling stockholder is selling 1.4 million shares, and will likely grant underwriters a 30-day over-allotment option to purchase about 2.5 million additional shares.
Each unit is comprised of one common share and one-half share purchase warrant, according to a Jan. 6 press release.
Banks would have to hold roughly $1 in capital for every $1 of energy infrastructure they owned, which would lead to them having to offer roughly $4 billion in fresh capital, Reuters reported.
Oil prices rose on Jan. 5 in an up-and-down session, lifted by news that Saudi Arabia had cut production to meet OPEC's agreement to reduce output after prices fell on data showing a surprisingly large increase in U.S. gasoline and distillate inventories.
The net proceeds will support general corporate purposes including debt repayment, capex and working capital.
The amendment also provides for a new $15 million commitment from certain of the parent’s shareholders in the form of equity or debt by Dec. 31, 2017.
On Dec. 30, 2016, a portion of the proceeds from the recent $79.4 million equity offering was used to repurchase $21 million of its 12% second-lien notes.