AGL Capital, a wholly owned financing subsidiary of AGL Resources, has raised $500 million in a sale of notes. The senior notes carry a coupon rate of 5.875%, are due to mature in 2041. The joint book-running managers for the offering are Goldman Sachs, Morgan Stanley, RBS Securities, and Merrill Lynch, Pierce, Fenner & Smith Incorporated.
The unit of the natural gas distribution and marketing company intends to use the net proceeds to repay a portion of its short-term debt, and to pay a part of the cash consideration and expenses related to its proposed merger with Nicor.
Click here for the release from PR Newswire.