Southwest Gas Holdings completes $325 million Centuri stock offering

Southwest Gas Holdings, Inc. (NYSE: SWX) announced the completion of its secondary public offering of Centuri Holdings, Inc. (NYSE: CTRI) common stock. The company sold 17.25 million shares at $19.50 per share, including 2.25 million shares from underwriters exercising their over-allotment option.

Southwest Gas Holdings received net proceeds of approximately $325 million from the offering after deducting underwriter fees. The company also received approximately $31 million from a concurrent private placement to investment entities affiliated with Carl C. Icahn, which purchased 1.573 million Centuri shares at the same price.

The company stated it intends to use the combined proceeds of approximately $356 million for debt repayment and general corporate purposes. Following the transactions, Southwest Gas Holdings retains ownership of approximately 30.9% of Centuri's outstanding common stock.

Due to the reduced ownership stake, Southwest Gas Holdings no longer maintains a controlling financial interest in Centuri. The company announced it will deconsolidate Centuri from its financial statements under U.S. Generally Accepted Accounting Principles and will account for its remaining Centuri interest using the equity method.

J.P. Morgan, Wells Fargo Securities, BofA Securities and Moelis & Company served as joint lead book-running managers for the offering. Additional book running managers included Baird, BTIG, KeyBanc Capital Markets, MUFG and UBS Investment Bank.

Southwest Gas Holdings operates as a natural gas distribution company serving over 2 million customers in Arizona, Nevada and California through its subsidiary Southwest Gas Corporation. Centuri Holdings provides utility infrastructure services across North America.

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