Black Belt Energy to Offer $800 Million in Gas Project Revenue Bonds
By Stephen Nakrosis
The Black Belt Energy Gas District plans to offer $800 million in 2025 Series F gas project revenue bonds to raise funds for the prepay of natural gas deliveries over a 30-year period.
The bonds will be secured by a trust account, which will include funds from the sale of the bonds, revenues, and other right, titles, and payments, according to documents on MuniOS. The bonds aren't an obligation of the state of Alabama, nor of the member municipalities of Black Belt Energy.
The preliminary amortization schedule shows the bonds will begin maturing on Dec. 1, 2027, with maturities continuing on each subsequent Dec. 1 through 2035.
The Black Belt Energy Gas District was formed by three cities in Alabama as a municipally owned corporation in 2008. It provides natural gas and services to its member municipalities, and also sells gas directly to public gas customers, gas-distribution systems and others.
The gas will be supplied by Pierpont Energy Prepay 4, and Black Belt will sell the gas to the Louisiana Community Development Utility Commission. The Commission will then sell the gas to Linde Inc., which will use it to operate three industrial gas production facilities in Louisiana.
Pacific Life Insurance will be the funding agreement provider, and BP Energy will be the commodity swap counterparty.
S&P Global ratings is expected to assign a municipal-bond rating of AA- to the bonds.
J.P. Morgan and Stifel are listed as the offering's lead managers.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
December 16, 2025 15:57 ET (20:57 GMT)
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