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Williams to Buyback $1.1B of Debt to Trim Expenses
Williams on Monday set the terms for a $1.1 billion tender offer as part of a long-range plan to trim $4 billion of its $11.3 billion debt by the end of 2005.
Williams, which is refocusing on its natural gas production and pipeline operations, is offering to purchase all of its $114 million debt in 6.6% notes due Nov. 15, and up to $1 billion of other notes that mature in 2006 through 2009. The tender offers are scheduled to expire June 8.
Some of the outstanding notes were originally issued by Barrett Resources Corp., Williams Holdings of Delaware Inc. and MAPCO Inc. Williams purchased Barrett Resources in 2001 for $2.5 billion, now a subsidiary known as Williams Production RMT Co. (see Daily GPI, May 8, 2001). In connection with the offer for 7.55% senior notes due in 2007 that were originally issued by Barrett, Williams Production wants to eliminate most of the restrictive covenants and certain default provisions that are part of the original note.
Williams has retained Lehman Brothers Inc. to serve as the lead dealer manager; Banc of America Securities LLC, Barclays Capital Inc., Greenwich Capital Markets, Inc., J.P. Morgan Securities Inc., Merrill Lynch & Co. and Scotia Capital (USA) Inc. to serve as co-dealer managers, and D.F. King & Co. Inc. to serve as the information agent for the tender offer.
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