By Paul A. Harris
St. Louis, Sept. 15 - Pacific Energy Partners LP, issuing in conjunction with Pacific Energy Finance Corp., priced an upsized $175 million issue of 6¼% 10-year senior notes (Ba2/BB-) at 99.544 to yield 6.3125% on Thursday, according to a syndicate source.
The yield is near the tight end of the 6 3/8% area price talk.
Lehman Brothers and Banc of America Securities LLC were joint bookrunners for the Rule 144A with registration rights offering. Citigroup was the joint lead manager. BNP Paribas and Scotia Capital were co-managers.
Proceeds will be used to help fund the $455 million acquisition of some terminal and pipeline assets from subsidiaries of Valero LP.
The issue was upsized from $150 million.
Pacific Energy is a Long Beach, Calif., master limited partnership that gathers, transports, stores and distributes crude oil and other related products.
| Issuers: | Pacific Energy Partners LP/Pacific Energy Finance Corp.
|
| Amount: | $175 million (increased from $150 million)
|
| Maturity: | Sept. 15, 2015
|
| Security description: | Senior notes
|
| Bookrunners: | Lehman Brothers, Banc of America Securities LLC
|
| Joint lead manager: | Citigroup
|
| Co-managers: | BNP Paribas, Scotia Capital
|
| Coupon: | 6¼%
|
| Price: | 99.544
|
| Yield: | 6.3125%
|
| Spread: | 210 basis points
|
| Call feature: | Make-whole call at Treasuries plus 50 basis points until Sept. 15, 2010, then callable at 103.125, 102.083, 101.042, par on and after Sept. 15, 2013
|
| Equity clawback: | Until Sept. 15, 2008 for up to 35% at 106.25
|
| Trade date: | Sept. 15
|
| Settlement date: | Sept. 23
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB-
|
| Price talk: | 6 3/8% area
|
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