Item 1.01. Entry into a Material Definitive Agreement.
On May 31, 2019, Southwest Gas Corporation (the Company), a wholly owned subsidiary of Southwest Gas Holdings, Inc. (the Parent),
completed a public offering of $300 million aggregate principal amount of 4.150% Senior Notes due 2049 (the Notes) pursuant to an Underwriting Agreement, dated May 28, 2019, with BNY Mellon Capital Markets, LLC, BofA
Securities, Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC , as representatives of the underwriters named therein (the Underwriting Agreement). The Notes were registered under the Securities Act of 1933, as amended,
pursuant to an effective shelf registration statement on Form
S-3
(File
No. 333-222047-01)
filed with the Securities and
Exchange Commission on December 13, 2017. The Company received net proceeds from the sale of the Notes of approximately $296.3 million, after deducting underwriting discounts and estimated offering expenses payable by the Company. The
Company intends to use the net proceeds from the offering to repay a portion of the outstanding balance under its credit facility.
The Notes were issued
pursuant to an Indenture, dated as of May 31, 2019 (the Base Indenture), by and between the Company and The Bank of New York Mellon Trust Company, N.A., as Trustee (the Trustee) and a First Supplemental Indenture, dated
as of May 31, 2019, between the Company and the Trustee (the First Supplemental Indenture, and together with the Base Indenture, the Indenture). The Indenture provides for customary events of default and includes certain
covenants, including, but not limited to, restrictions on the Companys ability to issue indebtedness for borrowed money secured by a lien and enter into certain sale and lease-back transactions.
The Notes bear interest at a fixed rate equal to 4.150% per year, payable semi-annually in arrears on June 1 and December 1 of each year beginning
on December 1, 2019. The Notes are unsecured and unsubordinated obligations of the Company and are not guaranteed by the Parent. The Notes rank equal in right of payment with all of the Companys existing and future unsecured and
unsubordinated indebtedness. The Notes will mature on June 1, 2049. At any time prior to December 1, 2048, the Company may redeem the Notes, in whole or in part, at a price equal to the greater of (1) 100% of the principal amount of the
Notes being redeemed, plus accrued and unpaid interest on those Notes up to but excluding the redemption date, or (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes being redeemed (not
including any portion of such payments of interest accrued as of the redemption date), discounted to the redemption date on a semi-annual basis (assuming a
360-day
year consisting of twelve
30-day
months) at the treasury rate plus 25 basis points, plus accrued and unpaid interest up to, but excluding, the redemption date. At any time on or after December 1, 2048, the Company may redeem the Notes
in whole or in part at 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest on those Notes up to but excluding the redemption date.
The foregoing descriptions of the Underwriting Agreement, the Indenture and the Notes are qualified in their entirety by reference to the Underwriting
Agreement, Base Indenture, the Supplemental Indenture and the Notes, which are attached hereto as Exhibits 1.1, 4.1, 4.2 and 4.3, respectively, and are incorporated herein by reference.