Atmos Energy Completes $700 Million Sale Of 6.000% Notes Due November 2036
The gas utility's ten-year notes were offered at 99.638% of face value and leave it about $691.4 million after costs.
Atmos Energy completed a public offering of $700 million of 6.000% Senior Notes due 2036, according to an 8-K filed Friday. After the underwriting discount and estimated offering expenses, the company received net proceeds of about $691.4 million.
What the 8-K says
The notes pay a fixed 6.000% a year, with interest due each May 15 and November 15. The first payment falls on May 15, 2027, and the notes mature on November 15, 2036.
Per the officers' certificate, the notes were offered to the public at 99.638% of their principal amount. The underwriting agreement is dated October 6, 2026.
The offering was registered under a Form S-3 shelf registration, and the prospectus supplement is dated October 6, 2026. It was filed with the SEC on October 8, 2026.
What it changes for holders
The notes are unsecured senior obligations. They rank equally with all of Atmos Energy's other existing and future unsubordinated debt.
Covenants limit the company and its restricted subsidiaries from granting specified liens, entering specified sale-and-leaseback deals, merging, or selling all or substantially all of its assets. The filing says these limits are subject to a number of exceptions.
If an event of default occurs and continues, the trustee or holders of at least 25% of the notes can declare them immediately due. Defaults include missed interest payments, covenant breaches, certain payment defaults on other debt, and bankruptcy events.
Atmos Energy can redeem the notes early. Before August 15, 2036, the price is the greater of 100% of principal or the present value of remaining payments discounted at the Treasury rate plus 15 basis points (0.15 percentage points). On or after that date, redemption is at par plus accrued interest.
The first coupon is due May 15, 2027, with interest accruing from October 9, 2026.
Sources
- 8-K Filing — ATMOS ENERGY CORP (ATO) — SEC EDGAR
- Exhibit d174816dex42.htm — ATMOS ENERGY CORP 8-K exhibit — SEC EDGAR
