|
Tranche
|
Expected Weighted Average Life (Years)
|
Principal Amount Offered*
|
Scheduled Final Payment Date
|
Final Maturity Date
|
Interest Rate
|
Initial Price to Public
|
Underwriting Discounts and Commissions
|
Proceeds to Issuing Entity (before expenses)
|
|
2023-A
|
5.47
|
$95,000,000
|
03/01/2033
|
03/01/2035
|
5.155%
|
99.98246%
|
0.526%
|
$94,483,337
|
The total initial price to the public is $94,983,337. The total amount of the underwriting discounts and commissions is $500,000. The total amount of proceeds to the issuing entity before deduction of expenses (estimated to be $4.45 million) is $94,483,337.
Investing in the 2023-A Senior Secured Securitized Utility Tariff Bonds involves risks. Please read "Risk Factors" beginning on page 13 of the accompanying prospectus to read about factors you should consider before buying the bonds.
Atmos Energy Corporation as depositor, is offering $95,000,000 of Senior Secured Securitized Utility Tariff Bonds, referred to herein as the bonds, to be issued by Atmos Energy Kansas Securitization I, LLC, as the issuing entity. Atmos Energy Corporation is also the seller, initial servicer and sponsor with regard to the bonds. The bonds are senior secured obligations of the issuing entity supported by securitized utility tariff property, which includes the right to a special, irrevocable nonbypassable charge, known as a securitized utility tariff charge, to be paid by all existing and future retail customers of Atmos Energy Corporation in its Kansas service territory. The securitization provisions of the Securitization Act mandate that securitized utility tariff charges be adjusted semi-annually, and the Kansas Corporation Commission further requires such true-ups to occur semi-annually (and permits such true-ups to occur more frequently) if necessary, in each case to ensure the expected recovery of amounts sufficient to timely provide all scheduled payments of principal and interest on the bonds, as described further in this prospectus, and the Kansas Corporation Commission guarantees it will act under the financing order to ensure such recoveries as described below. Each bond will be entitled to interest on March 1 and September 1 of each year. The first scheduled payment date is March 1, 2024. Interest will accrue from the date of issuance at an interest rate of 5.155%. On each payment date, we will pay amounts of principal and interest then due or scheduled to be paid on the securitized utility tariff bonds from amounts available in the collection account and the related subaccounts held by the trustee.
The bonds represent obligations only of the issuing entity, Atmos Energy Kansas Securitization I, LLC, and do not represent obligations of the sponsor or any of its affiliates other than the issuing entity. Please read "Description of the Securitized Utility Tariff Bonds" and "Security for the Securitized Utility Tariff Bonds" in this prospectus. The bonds are secured by the assets of the issuing entity, consisting principally of the securitized utility tariff property and funds on deposit in the collection account for the bonds and related subaccounts. Please read " Security for the Securitized Utility Tariff Bonds " and " Description of the Securitized Utility Tariff Bonds " in this prospectus. The bonds are not a debt or general obligation of the State of Kansas, the Kansas Corporation Commission or any other governmental agency or instrumentality and are not a charge on the full faith and credit or the taxing power of the State of Kansas or any governmental agency or instrumentality.
The Kansas Corporation Commission guarantees that it will act under its irrevocable financing order as expressly authorized by the securitization provisions of the Securitization Act to ensure that expected securitized utility tariff charge revenues are sufficient to pay on a timely basis scheduled principal and interest on the bonds. The Kansas Corporation Commission’s obligations relating to the bonds, including the specific actions that it has guaranteed to take, are direct, explicit, irrevocable and unconditional upon issuance of the bonds, and are legally enforceable against the Kansas Corporation Commission, which is a United States public sector entity, in accordance with Kansas law.
All matters relating to the structuring and pricing of the bonds have been considered jointly by Atmos Energy Kansas Securitization I, LLC and the Kansas Corporation Commission or its designated representative.
Additional information is contained in the accompanying prospectus. You should read this prospectus supplement and the accompanying prospectus carefully before you decide to invest in the bonds. This prospectus supplement may not be used to offer or sell the bonds unless accompanied by the prospectus. Please review the prospectus.