Black Belt Energy to Issue $800 Million in Gas Project Revenue Bonds for Natural Gas Prepayment

The Black Belt Energy Gas District plans to issue $800 million in 2025 Series F gas project revenue bonds to fund the prepayment of natural gas deliveries over 30 years. The bonds will be secured by a trust account comprising bond sale proceeds and revenues.

They are not obligations of Alabama or its member municipalities. Maturities will start on Dec. 1, 2027, and continue annually through 2035. Black Belt Energy, formed in 2008 by three Alabama cities, provides natural gas services and sells gas to various customers.

Gas will be supplied by Pierpont Energy Prepay 4 and sold to the Louisiana Community Development Utility Commission, which will then sell it to Linde Inc. for use in Louisiana. Pacific Life Insurance is the funding agreement provider, and BP Energy will serve as the commodity swap counterparty.

S&P Global ratings anticipates assigning an AA- rating to the bonds, with J.P. Morgan and Stifel as lead managers.