By Andrea Heisinger
New York, Aug. 18 - Boardwalk Pipelines, LP priced $350 million 5.75% 10-year senior notes Tuesday to yield Treasuries plus 225 basis points, an informed source said.
Price guidance was at 230 to 235 bps, with the deal pricing well at the tight end of the range, the source said. There was "north of $1 billion" on the books, he said.
The notes (Baa2/BBB-/) priced at 99.813 to yield 5.774%. They have a make-whole call at Treasuries plus 35 bps.
Bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and Wells Fargo Securities.
Proceeds will be used to repay $100 million under a subordinated loan agreement with Boardwalk Pipelines Holding Corp. and to fund expansion projects, either directly or by repaying debt under a revolving credit facility.
The deal is guaranteed by parent company Boardwalk Pipeline Partners, LP.
The natural gas transportation and storage company is based in Houston.
| Issuer: | Boardwalk Pipelines, LP
|
| Issue: | Senior notes, guaranteed by Boardwalk Pipeline Partners, LP
|
| Amount: | $350 million
|
| Maturity: | Sept. 15, 2019
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities Inc., Wells Fargo Securities
|
| Coupon: | 5.75%
|
| Price: | 99.813
|
| Yield: | 5.774%
|
| Spread: | Treasuries plus 225 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Trade date: | Aug. 18
|
| Settlement date: | Aug. 21
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
| Price talk: | 230 to 235 bps
|
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