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Northern Illinois Gas Company commences consent solicitation from holders of First Mortgage Bonds
ATLANTA - October 18, 2012 - AGL Resources Inc. (NYSE: GAS) - AGL Resources subsidiary, Northern Illinois Gas Company ("Nicor Gas") announced today that it has commenced a consent solicitation (the "Consent Solicitation") from holders of record at 5:00 p.m., New York City time, on October 18, 2012, of its 6.58% First Mortgage Bonds due 2028, 7.2% First Mortgage Bonds due 2016, 5.80% First Mortgage Bonds due 2023, 5.90% First Mortgage Bonds due 2032 and 5.90% First Mortgage Bonds due 2033 (together, the "Notes") to a proposed amendment (the "Proposed Amendment") to the indenture governing the Notes (the "Indenture"), which will remove the requirement that Nicor Gas file periodic reports with the Securities and Exchange Commission (the "SEC") and replace this requirement with a requirement that, in the event it is not otherwise required to file periodic reports with the SEC, Nicor Gas supplementally make available certain financial information to holders and potential purchasers of the Notes. In addition to the Notes, there currently are outstanding under the Indenture the 5.85% First Mortgage Bonds due 2036, 6.25% First Mortgage Bonds due 2038, 4.70% First Mortgage Bonds due 2019 and 2.86% First Mortgage Bonds due 2016 of Nicor Gas (together, the "Private Notes"). The Notes, together with the Private Notes, are referred to herein as the "First Mortgage Bonds." The Proposed Amendment requires the consent of the holders of at least 66 2/3% in aggregate principal amount (or approximately $333.34 million) of the First Mortgage Bonds outstanding (the "Requisite Consents"), which will require the consent of at least a portion of the holders of the Private Notes. Nicor Gas previously commenced a separate consent solicitation to the Proposed Amendment from holders of the Private Notes. As of the expiration of that consent solicitation, Nicor Gas had received the consent of holders of $250 million in aggregate principal amount (or 100%) of the Private Notes. Thus, Nicor Gas only needs to obtain consent of holders of approximately $83.34 million of Notes in order to achieve the Requisite Consents. The Consent Solicitation will expire at 5:00 p.m., New York City time, on Thursday, October 25, 2012, unless extended or earlier terminated by Nicor Gas (the "Consent Date"). If Nicor Gas receives the Requisite Consents and effects the Proposed Amendment, holders who validly deliver their consent by the Consent Date in the manner described in the Solicitation Documents will be eligible to receive a consent fee of $1.25 per $1,000 of principal amount of Notes as to which such consent was validly delivered. If the Proposed Amendment is approved, it will be binding on all holders of the First Mortgage Bonds, including those that did not deliver their consent, and only holders validly delivering their consent will receive the consent fee. Copies of the Solicitation Documents may be obtained by holders of the Notes from the Information and Tabulation Agent for the Consent Solicitation, D.F. King & Co., Inc., at (800) 290-6429. J.P. Morgan Securities LLC is the Solicitation Agent for the Consent Solicitation. Questions regarding the Consent Solicitation may be directed to J.P. Morgan Securities LLC at (212) 834-3917. THIS NEWS RELEASE IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE A SOLICITATION OF CONSENTS. THE CONSENT SOLICITATION IS BEING MADE ONLY PURSUANT TO THE SOLICITATION DOCUMENTS THAT THE INFORMATION AND TABULATION AGENT WILL DISTRIBUTE TO HOLDERS OF THE NOTES. HOLDERS OF THE NOTES SHOULD READ CAREFULLY THE SOLICITATION DOCUMENTS PRIOR TO MAKING ANY DECISION WITH RESPECT TO THE CONSENT SOLICITATION, BECAUSE THOSE DOCUMENTS CONTAIN IMPORTANT INFORMATION, INCLUDING THE VARIOUS TERMS OF, AND CONDITIONS TO, THE CONSENT SOLICITATION. Contacts: Media |