Piedmont Natural Gas (PNY) Prices 4M Common Offering at $32/Share

January 30, 2013 7:43 AM EST
Piedmont Natural Gas (NYSE: PNY) announced that it has priced a public offering of 4,000,000 shares of its common stock at $32.00 per share. Of the 4,000,000 shares of Piedmont common stock being offered, Piedmont is selling 3,000,000 shares to the underwriters in the offering, and the forward counterparty (as defined below) is borrowing and selling to such underwriters 1,000,000 shares in connection with the forward sale agreement described below.

Piedmont has granted the underwriters an option to purchase up to 600,000 additional shares of Piedmont's common stock for a period of 30 days following pricing of the offering either directly from Piedmont or from the forward counterparty, at Piedmont's election.

In connection with the offering, Piedmont has entered into a forward sale agreement with Morgan Stanley, referred to in such capacity as the forward counterparty, pursuant to which Piedmont has agreed to sell to the forward counterparty (subject to its right to elect net share or cash settlement of such forward sale agreement) 1,000,000 shares of Piedmont's common stock, at a price per share equal to the public offering price of Piedmont's shares of common stock in this offering, less the underwriting discounts and commissions and subject to certain adjustments.

Piedmont intends to use any net proceeds that it receives from the offering and upon settlement of the forward sale agreement described above to finance capital expenditures, repay outstanding short-term, unsecured notes under its commercial paper program and for other general corporate purposes.

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