To further their pending merger, the Williams Companies Inc. has offered to reduce Transco Energy Co.'s cost of capital via a $950-million shot in the arm. The merger will create the second biggest U.S. pipeline company in terms of pipeline miles, but the largest in terms of gas delivered (about 4 trillion British thermal units annu-ally). The recapitalization plan, however, must first be approved by the Securities and Exchange Commission.
Williams agreed to buy the financially ailing Transco system last year in a $3-billion transaction, and recently completed a tender offer for 60 percent of Transco's common stock on January 17. A stock merger will follow, with Transco becoming a subsidiary of Williams, possibly by the end of the first quarter. Transco has already canceled its revolving bank credit facility, will redeem certain stock and notes, and will rely on Williams for its working capital and other financial needs. Capital spending in 1995 for the combined companies is estimated at $1 billion, Williams officials said. (em LG
Articles found on this page are available to Internet subscribers only. For more information about obtaining a username and password, please call our Customer Service Department at 1-800-368-5001.