Deal Description: On November 18, 2022, Kansas Gas Service Securitization I, L.L.C. (the “Issuer”), a wholly owned subsidiary of Kansas Gas Service, a division of ONE Gas, Inc. (“KGS”), closed its registered public offering and sale of $336 million aggregate principal amount of its Series 2022-A Senior Secured Securitized Utility Tariff Bonds, Tranche A (the “Bonds”). The Bonds were issued pursuant to a financing order issued by the State Corporation Commission of the State of Kansas (the “Kansas commission”) under the Utility Financing and Securitization Act, established by the Kansas Legislature, and are secured by securitized utility tariff property, which includes the right to an irrevocable, binding and nonbypassable charge, known as the “securitized utility tariff charge,” paid by all existing and future retail customers within KGS’s service area. The net proceeds from the sale of the Bonds will be paid to KGS by the Issuer, who will use the net proceeds to recover, finance or refinance the qualified extraordinary costs of KGS related to Winter Storm Uri, as approved by the Kansas commission. The Bonds were offered pursuant to the Prospectus dated November 9, 2022.
J.P. Morgan Securities LLC and RBC Capital Markets, LLC served as Representatives of the underwriters.
KGS is a division of ONE Gas, Inc., an Oklahoma corporation, distributes natural gas to approximately 72 percent of the natural gas distribution customers in Kansas, serving residential, commercial and transportation customers. As of December 31, 2021, KGS supplies natural gas service to approximately 647,000 customers, including approximately 641,000 retail customers, and owns 11,700 miles of distribution pipelines and 1,500 miles of transmission pipelines.
Baker Botts L.L.P. represented KGS in the offering.
Baker Botts Lawyers/Office Involved:
- Corporate: Tim Taylor (Partner; Houston); Jon Bobinger (Partner; Houston); William Stutts (Senior Counsel; Austin); Jamie Yarbrough (Senior Associate; Houston); Michael Mazidi (Associate; Houston); Austin Lee (Associate; Houston)
- Global Projects: Jim Barkley (Partner; Houston); Juliana Sersen (Partner; Austin); Patrick Leahy (Senior Associate; Austin)
- Tax: Michael Bresson (Partner; Houston); Jared Meier (Senior Associate; Houston); Phillip Clifton (Associate; Houston)
- Litigation: Aaron Streett (Partner; Houston); Mark Little (Special Counsel; Houston)
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