A leading master limited partnership, Williams Partners L.P. (WPZ) announced the completion of its sale of senior notes worth $1 billion. The notes had been issued in two parts – $600 million and $400 million – in aggregate principal amount.
The $600 million notes, which are set to mature in 2023, carry an annual interest rate of 4.500% and are priced at 99.396% of the principal amount. The $400 million notes are priced at 99.339% of the principal amount. These notes carry an interest rate of 5.800% and are scheduled to mature in 2043.
Williams Partners plans to use the net proceeds from the offering to repay amounts outstanding under its commercial paper program, to fund capital expenditures and for general partnership purposes.
Williams Partners is an energy master limited partnership engaged in gathering, transportation, treating and processing of natural gas as well as fractionation and storage of NGLs. The partnership owns interests in three major interstate natural gas pipelines that, combined, deliver 14% of the natural gas consumed in the U.S. The partnership’s gathering and processing assets include large-scale operations in the U.S. Rocky Mountains as well as onshore and offshore Gulf of Mexico. The general partner of the partnership is owned and managed by Williams Companies Inc. (WMB).
Williams Partners retains a Zacks Rank #3, which is equivalent to a short-term Hold rating. However, there are other stocks in the oil and gas sector – Blueknight Energy Partners, L.P. (BKEP) and SM Energy Company (SM) – which hold a Zacks Rank #1 (Strong Buy) and are expected to perform better.