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National Fuel Gas Co. (NYSE:NFG), a New Jersey-based natural gas distributor with a market capitalization of $6.56 billion, announced today its decision to redeem two series of notes earlier than their scheduled maturity dates. The company will redeem the entire outstanding $450 million of its 5.20% notes due in July 2025 and the entire $500 million of its 5.50% notes due in January 2026. The redemption date is set for March 6, 2025.
This financial maneuver is in line with the company’s rights under the optional redemption provision in the indenture agreement. The redemption will proceed at prices calculated according to the terms outlined in the indenture and the officer’s certificates that established the terms of the notes. The Bank of New York Mellon (NYSE:BK), serving as trustee, has issued the necessary redemption notices to the registered holders of these notes.
The decision to redeem these notes early is a significant financial event for National Fuel Gas and its investors. The action suggests that the company is taking steps to manage its total debt of $2.89 billion and potentially restructure its capital in a strategic manner. By redeeming these notes before their due dates, National Fuel Gas may be looking to take advantage of current market conditions to reduce its interest expenses or to reallocate capital for other corporate purposes. The stock has shown remarkable strength with a 59.28% return over the past year, currently trading near its 52-week high. For detailed financial analysis and additional insights, check out the comprehensive research report available on InvestingPro.
Shareholders and potential investors should note that this announcement does not serve as the redemption notice for the notes. Further details regarding the applicable redemption prices will be determined based on the conditions set forth in the governing indenture. The company maintains a strong dividend track record, having raised its dividend for 54 consecutive years, with a current yield of 2.86%.
This move by National Fuel Gas is based on information provided in a recent SEC filing.
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