Item 1.01. Entry into a Material Definitive Agreement.
On March 26, 2009, Atmos Energy Corporation ("Atmos Energy") completed a public
offering of $450,000,000 aggregate principal amount of its 8.50% Senior Notes
due 2019 (the "Notes"). Atmos Energy received net proceeds from the offering,
after the underwriting discount and estimated offering expenses, of
approximately $446 million. The Notes were issued pursuant to an indenture dated
as of March 26, 2009 (the "Indenture") between Atmos Energy and U.S. Bank
National Association, as trustee and are represented by a global security
executed by Atmos Energy on March 26, 2009 (the "Global Security"). The Notes
are unsecured obligations ranking equally with all of Atmos Energy's existing
and future senior indebtedness and senior in right of payment to any future
indebtedness that is subordinated to the Notes. The Notes bear interest at an
annual rate of 8.50%, payable by Atmos Energy on March 15 and September 15 of
each year, beginning on September 15, 2009, and mature on March 15, 2019. Atmos
Energy may redeem the Notes at its option at any time, in whole or in part, at a
redemption price calculated in accordance with the Indenture.
The Indenture includes covenants that limit the ability of Atmos Energy and its
restricted subsidiaries (as defined) to, among other things, (i) create
specified liens, (ii) engage in specified sale and leaseback transactions,
(iii) consolidate or merge with or into other companies or (iv) sell all or
substantially all of Atmos Energy's assets. The restrictive covenants are
subject to a number of exceptions and qualifications set forth in the Indenture.
The Indenture provides for events of default, including (i) interest payment
defaults, (ii) breaches of covenants, (iii) certain payment defaults at final
maturity or acceleration of other indebtedness and (iv) the occurrence of events
of bankruptcy, insolvency or reorganization. If any event of default occurs and
is continuing, subject to certain exceptions, the trustee or the holders of at
least 25% in aggregate principal amount of the then outstanding Notes may
declare all the Notes to be due and payable immediately, together with any
accrued and unpaid interest.
The foregoing summaries are qualified in their entirety by reference to the text
of the Indenture and the Global Security, which are filed as Exhibits 4.1 and
4.2 to this Current Report on Form 8-K, respectively, and which are incorporated
herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
See Index to Exhibits attached hereto.