The Houston Corporation
List of Deals
- 1961 The Houston Corporation and Pipeline Subsidiaries: 750,912 shares of common stock offered by subscription warrants; $4,000,000 aggregate principal amount of bank loans; $15,330,000 first mortgage pipe line bonds 5 3/4% series due January 1, 1982
The Houston Corporation was incorporated in Florida on March 19, 1957. The company owned two subsidiaries: Coastal Transmission Corporation and Houston Texas Gas and Oil Corporation. In 1958 Houston Corporation began the process of raising $185 million to develop a 1,500-mile natural gas pipeline that would link the Texas and Louisiana producing fields with markets in peninsular Florida. In 1958 Houston contracted to take control of gas distribution systems in Jacksonville, Miami, Lakeland, Daytona Beach, Orlando, Winter Park, and other smaller communities in Florida. The systems in these communities, which used manufactured and liquefied petroleum gas, would be converted to use natural gas once the $161 million pipeline was in operation.
The financing of this large project was composed of a sale of $36.2 million 5 percent subordinated debentures and 1,809,400 shares of Houston Corporation. In addition, institutional investors in a private transaction bought $107.4 million of first mortgage bonds issued by the two Houston Corporation subsidiaries. Lastly, there was a bank loan of $10 million.
The transmission (pipeline) system was completed and placed in initial operation in the summer of 1959. During 1960 Houston delivered to customers in Florida an average of 259,600 million cubit feet per day of natural gas and during the first quarter of 1961 an average of 276,788 million cubit feet. The company generated operating revenues of $29.6 million in 1960 and $30.7 in 1961.