NW Natural raises $120M in first mortgage bonds
What's the deal? Northwest Natural Gas CompanyDealroom has a profile for this one. Try Dealroom →, a subsidiary of Northwest Natural Holding CompanyDealroom has a profile for this one. Try Dealroom →, issued $120 million in First Mortgage Bonds on September 3, 2026, sold privately to institutional investors. The offering splits into two equal tranches under a Bond Purchase Agreement signed the same day.
The terms: One $60 million series carries 5.62% interest and matures September 3, 2036; the other $60 million series carries 6.26% and matures September 3, 2056. Both pay interest semi-annually on March 3 and September 3, starting March 3, 2027.
How it's structured: The bonds were privately placed under the Section 4(a)(2) exemption of the Securities Act of 1933. They were issued under the Twenty-ninth Supplemental Indenture to NW NaturalDealroom has a profile for this one. Try Dealroom →'s Mortgage and Deed of Trust, first dated July 1, 1946, with Deutsche Bank Trust Company AmericasDealroom has a profile for this one. Try Dealroom → as trustee.
Redemption options: Each series can be redeemed before maturity at 100% of principal plus a "make-whole" premium and accrued interest. After specified dates — June 3, 2036, and March 3, 2056 — redemption drops to 100% of principal plus accrued interest.
The signal: At $120 million, this ranks among the smaller debt raises tracked, in the 12th percentile by amount. For a regulated gas utility, first mortgage bonds are a routine, low-cost way to fund operations and infrastructure, secured against physical assets and pitched at long-term institutional buyers.
Image credit: Jason McHuff
