Texas natural gas securitization priced as bill to pay off bonds advances

Underwriters completed pricing Thursday a $3.52 billion Texas securitization deal for natural gas providers, but the bonds may stay in investors’ hands only for a short time.

The Texas Senate Finance Committee advanced a for mid-August and later expected in November, before it was delayed that month by the Texas Bond Review Board for a full review. On Feb. 17, the board finally approved the deal with the addition of an optional redemption. 

The bonds received preliminary triple-A ratings from Fitch Ratings, Moody’s Investors Service, and Kroll Bond Rating Agency.

Meanwhile, a lawsuit has been filed by a Houston data company in Harris County District Court against a slew of energy companies and financial firms, claiming they acted to artificially drive up natural gas prices ahead of the 2021 storm, the Houston Chronicle reported Friday. Defendants in the lawsuit include CenterPoint Energy and Atmos Energy, which were among the natural gas providers participating in the corporation’s securitization financing.