Spire Completes $2.48B Piedmont Acquisition, Secures $1.625B in Financing

summarizeSummary

Spire Inc. officially completed its $2.48 billion acquisition of Piedmont Natural Gas's Tennessee business, significantly expanding its regulated utility operations, and detailed the financing through an $800 million delayed draw term loan and $825 million in senior notes.

check_boxKey Events

• Acquisition of Piedmont Natural Gas Business Completed

  Spire Inc. completed the acquisition of Piedmont Natural Gas Company, Inc.'s Tennessee natural gas local distribution company business from Duke Energy for $2.48 billion in cash.

• Secured $800 Million Delayed Draw Term Loan

  The company entered into a Delayed Draw Term Loan Agreement for an aggregate of $800 million in senior unsecured term loan commitments, with $600 million allocated to finance the acquisition and $200 million for general corporate purposes. The full amount was borrowed on March 31, 2026, maturing on March 30, 2027.

• Issued $825 Million in Senior Notes

  Spire Tennessee Inc., a wholly-owned subsidiary, completed the issuance and sale of $825 million principal amount of Series 2026 Senior Notes in five tranches, with proceeds used for refinancing existing debt and general corporate purposes.

• Strategic Expansion of Utility Footprint

  The acquisition significantly expands Spire's regulated utility footprint, making Spire Tennessee the largest investor-owned natural gas utility in Tennessee, and is expected to support long-term adjusted earnings per share growth of 5-7%.

auto_awesomeAnalysis

This 8-K confirms the completion of a highly significant acquisition for Spire, valued at nearly half its market capitalization. The acquisition of Piedmont Natural Gas's Tennessee operations is a major strategic expansion, positioning Spire Tennessee as the largest investor-owned natural gas utility in the state and supporting the company's long-term adjusted earnings per share growth targets. The filing also details the substantial financing package secured for this acquisition, including an $800 million delayed draw term loan and $825 million in senior notes, demonstrating the company's ability to fund this large-scale strategic move. Investors should view this as a transformational event for Spire, with potential for significant long-term growth, albeit with increased debt.