By Mary-Katherine Stinson and Cristal Cody
Columbus, Ohio, Feb. 9 – Boardwalk Pipelines, LP gave details of its $600 million offering of 5.625% senior notes due Aug. 1, 2034 (Baa2/BBB-/BBB), which priced on Thursday, according an FWP filed with the Securities and Exchange Commission and a market source.
The company sold the notes at 99.862 to yield 5.643%, or Treasuries plus 148 basis points, after price talk in the Treasuries plus 170 bps area.
The notes feature a make-whole call at Treasuries plus 25 bps before May 1, 2034; when it will transition to a par call for the last three months.
Barclays, J.P. Morgan Securities LLC, MUFG Securities Americas Inc., Truist Securities Inc., Citigroup Global Markets Inc., Regions Securities LLC, TD Securities (USA) LLC and Wells Fargo Securities LLC were the bookrunners.
The notes are fully and unconditionally guaranteed by parent company Boardwalk Pipeline Partners, LP.
Boardwalk plans to use the proceeds to retire all the outstanding $600 million aggregate principal amount of the 4.95% notes due 2024 at or prior to maturity. The remaining amounts, if any, will be used for general corporate purposes, which may include, among other things, growth capital expenditures and repayment of other future maturities of long-term debt.
Boardwalk Pipelines is a Houston-based owner and operator of natural gas pipelines and storage facilities.
| Issuer: | Boardwalk Pipelines, LP
|
| Guarantor: | Boardwalk Pipeline Partners, LP
|
| Amount: | $600 million
|
| Issue: | Senior notes
|
| Maturity: | Aug. 1, 2034
|
| Bookrunners: | Barclays, J.P. Morgan Securities LLC, MUFG Securities Americas Inc., Truist Securities Inc., Citigroup Global Markets Inc., Regions Securities LLC, TD Securities (USA) LLC and Wells Fargo Securities LLC
|
| Co-managers: | BofA Securities, Inc. and Goldman Sachs & Co. LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | Vinson & Elkins LLP
|
| Counsel to underwriters: | Sidley Austin LLP
|
| Coupon: | 5.625%
|
| Price: | 99.862
|
| Yield: | 5.643%
|
| Spread: | Treasuries plus 148 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before May 1, 2034; after at par
|
| Trade date: | Feb. 8
|
| Settlement date: | Feb. 15
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 170 bps area
|
| Cusip: | 096630AK4
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
