DALLAS–(BUSINESS WIRE)–Atmos Energy Corporation (NYSE: ATO) announced today that it plans to make a public offering of $650 million of shares of its common stock. Of the $650 million of shares of Atmos Energy common stock being offered, Atmos Energy expects to sell approximately $500 million of shares to the underwriters in the offering, and the forward counterparties (as defined below) expect to borrow and sell to such underwriters approximately $150 million of shares in connection with the forward sale agreements described below. In conjunction with the offering, Atmos Energy intends to grant to the underwriters an option to purchase up to $97.5 million of additional shares of Atmos Energy’s common stock either directly from Atmos Energy or from the forward counterparties described below, at Atmos Energy’s election.
Goldman Sachs & Co. LLC, BofA Merrill Lynch, and Wells Fargo Securities are acting as underwriters for the offering and propose to offer the shares of common stock from time to time for sale in one or more transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices.
In connection with the offering, Atmos Energy intends to enter into forward sale agreements with each of Goldman Sachs & Co. LLC and Bank of America N.A., referred to in such capacity as the forward counterparties, pursuant to which Atmos Energy will agree to sell to the forward counterparties or their respective affiliates (subject to its right to elect net share or cash settlement of such forward sale agreement) approximately $150 million of shares of common stock in this offering, less the underwriting discounts and commissions and subject to certain adjustments.
Atmos Energy intends to use the net proceeds from this offering, together with any net proceeds received upon the settlement of the forward sale agreements, to repay short-term debt under its commercial paper program, to fund capital spending primarily to enhance the safety and reliability of its system and for general corporate purposes.