By Zaeem Shoaib
The Black Belt Energy Gas District in Alabama plans to sell $925 million of revenue bonds to prepurchase natural gas that will be delivered during a period of about 30 years.
Black Belt will issue an as yet undisclosed amount of the 2025 Series B bonds due on Oct. 1 2026 through 2036, according to documents posted Friday on MuniOS.
Interest on the bonds is payable on April 1 and Oct. 1. Interest rates and yields on the debt have yet to be determined.
Proceeds from the tax-exempt bonds will be used to prepay the costs of the acquisition of a fixed quantity of natural gas to be delivered during an approximately 30-year period under an agreement between Aron Energy Prepay 56 and Black Belt.
The natural gas will be purchased by Aron Energy Prepay from J. Aron & Co., the commodities-trading unit of Goldman Sachs.
The Louisiana Municipal Natural Gas Purchasing and Distribution Authority has agreed to buy about 54.1% of the gas to be delivered, and the Louisiana Community Development Utility Commission will buy 45.9% of the gas.
Black Belt is a municipally owned corporation formed by the Town of Grove Hill, and the cities of Jackson and Thomasville. The corporation acquires, sells, finances, and manages supplies of natural gas for other municipally owned gas districts and municipalities across the U.S.
Moody's Ratings has assigned the securities a Baa1 rating.
Goldman Sachs and Stifel are lead managers on the offering.
Write to Zaeem Shoaib at zaeem.shoaib@wsj.com
(END) Dow Jones Newswires
March 03, 2025 12:55 ET (17:55 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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