By Stephen Nakrosis


Alabama's Black Belt Energy plans to sell $650 million of gas project revenue bonds for the prepurchase of natural gas that will be delivered over a period of about 30 years.

The 2024 Series C municipal bonds will be issued in increments of $5,000, and aren't obligations of the state of Alabama or of any member municipalities of Black Belt, according to documents posted Tuesday on MuniOS.

Interest rates and yield on the bonds haven't been set, according to the road show document. The bonds are expected to be paid off with revenue from the gas project, Black Belt said.

Aron Energy Prepay will supply the natural gas under a prepaid gas sales agreement. The gas will be sold to Aron Prepay by J. Aron & Co., Goldman Sachs' commodities-trading unit, and will be supplied in quantities and at delivery points necessary to meet Black Belt's obligations.

Black Belt is a public corporation formed by three municipalities that sells gas at wholesale to municipal systems in Alabama and other states. The company currently serves 6,800 retail customers in eight counties in southwest Alabama. They own and operate 150 miles of transmission pipelines and 457 miles of distribution mains.

Goldman Sachs and Stifel, Nicolaus & Co. are listed as the offering's lead managers.


Write to Stephen Nakrosis at stephen.nakrosis@wsj.com


(END) Dow Jones Newswires

07-24-24 1830ET