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Piedmont Natural Gas Announces Stock Offering

Piedmont Natural Gas Co. Inc. (PNY) said Monday that it plans to offer about 4 million shares of its common stock in a registered underwritten public offering.

Of the about 4 million shares of Piedmont common stock being offered, the company expects to sell about 3 million shares to the underwriters in the offering, and the forward counterparty expects to borrow and sell to such underwriters about 1 million shares in connection with a forward sale agreement.

In connection with the offering, Piedmont plans to enter into a forward sale agreement with Morgan Stanley, pursuant to which Piedmont will agree to sell to the forward counterparty about 1 million shares of Piedmont's common stock, at a price per share equal to the public offering price of Piedmont's shares of common stock in the offering, less the underwriting discounts and commissions and subject to certain adjustments.

Piedmont also plans to grant to the underwriters an option to purchase up to 600,000 additional shares of its common stock either directly from Piedmont or from the forward counterparty.

Piedmont said it plans to use any net proceeds that it receives from the offering and any proceeds that it receives upon settlement of the forward sale agreement to finance capital expenditures, repay outstanding short-term, unsecured notes under its commercial paper program and for other general corporate purposes.

Morgan Stanley, J.P. Morgan and Wells Fargo Securities are the joint book-running managers for the offering. The co-managers are BB&T Capital Markets and RBC Capital Markets.

by RTT Staff Writer

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