Item 1.01. Entry into a Material Definitive Agreement.
Indenture
On May 8, 2020, Transcontinental Gas Pipe Line Company, LLC (the "Company"), an
indirect wholly owned subsidiary of The Williams Companies, Inc., completed an
offering of $700 million in aggregate principal amount of its 3.250% Senior
Notes due 2030 (the "2030 Notes") and $500 million in aggregate principal amount
of its 3.950% Senior Notes due 2050 (the "2050 Notes," and collectively, the
"Notes") in a private placement conducted pursuant to Rule 144A and Regulation S
under the Securities Act of 1933, as amended (the "Securities Act").
The Notes were issued under an Indenture, dated as of May 8, 2020 (the
"Indenture"), between the Company and The Bank of New York Mellon, as trustee.
The Notes are the Company's senior unsecured obligations ranking equally with
the Company's other existing and future senior unsecured indebtedness. The 2030
Notes bear interest at a rate of 3.250% per annum and were priced at 99.787% of
par. The 2030 Notes will pay interest semi-annually in cash in arrears on May 15
and November 15 of each year commencing on November 15, 2020. The 2030 Notes
will mature on May 15, 2030. The 2050 Notes bear interest at a rate of 3.950%
per annum and were priced at 99.424% of par. The 2050 Notes will pay interest
semi-annually in cash in arrears on May 15 and November 15 of each year
commencing on November 15, 2020. The 2050 Notes will mature on May 15, 2050.
At any time prior to February 15, 2030, in the case of the 2030 Notes, and
November 15, 2049, in the case of the 2050 Notes, the Company may redeem some or
all of the Notes at a specified "make whole" premium described in the Indenture.
The Company also has the option, at any time on or after February 15, 2030, in
the case of the 2030 Notes, and November 15, 2049, in the case of the 2050
Notes, to redeem some or all of the Notes at a redemption price equal to 100% of
the principal amount of the Notes to be redeemed, as more fully described in the
Indenture. The Indenture contains covenants that, among other things, restrict
the Company's ability to grant liens on its assets and merge, consolidate or
transfer or lease all or substantially all of its assets, subject to certain
qualifications and exceptions.
The foregoing description of the Notes and the Indenture is qualified in its
entirety by reference to the Indenture, a copy of which is filed as Exhibit 4.1
to this Current Report on Form 8-K and incorporated herein by reference.
Registration Rights Agreement
The holders of the Notes are entitled to the benefits of a Registration Rights
Agreement, dated May 8, 2020 (the "Registration Rights Agreement"), among the
Company and the initial purchasers listed therein. Pursuant to the Registration
Rights Agreement, the Company has agreed to file a registration statement with
the Securities and Exchange Commission for an offer to exchange the Notes for a
new issuance of substantially identical notes issued under the Securities Act
(the "Exchange Offer") and to cause the Exchange Offer to be consummated within
365 days after May 8, 2020. The Company may be required to provide a shelf
registration statement to cover resales of the Notes under certain
circumstances. If the Company fails to satisfy its obligations under the
Registration Rights Agreement, it may be required to pay additional interest on
the Notes.
The foregoing description of the Registration Rights Agreement is qualified in
its entirety by reference to the Registration Rights Agreement, a copy of which
is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated
herein by reference.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The information included in Item 1.01 of this Current Report is incorporated by
reference into this Item 2.03.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit
No. Description
4.1 Indenture, dated as of May 8, 2020, between Transcontinental Gas
Pipe Line Company, LLC and The Bank of New York Mellon Trust
Company, N.A., as trustee.
10.1 Registration Rights Agreement, dated May 8, 2020, among
Transcontinental Gas Pipe Line Company, LLC and the initial
purchasers listed therein.
104 Cover Page Interactive Data File. The cover page XBRL tags are
embedded within the inline XBRL document (contained in Exhibit 101).
--------------------------------------------------------------------------------
© Edgar Online, source Glimpses