By Andrea Heisinger
New York, March 11 - DCP Midstream Operating, LP was in the market Monday with a $500 million sale of 3.875% 10-year senior notes (Baa3/BBB-/BBB-) priced at 198 basis points over Treasuries, a market source said.
Pricing was at 98.718 to yield 4.032%. There is a make-whole call at Treasuries plus 30 bps until Dec. 15, 2022 and a par call after that date.
The notes are guaranteed by DCP Midstream Partners, LP.
Active bookrunners were RBC Capital Markets LLC, RBS Securities Inc. and SunTrust Robinson Humphrey Inc. Passive bookrunners were Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and U.S. Bancorp Investments Inc.
Proceeds will be used to fund a cash portion of the purchase price of the Eagle Ford transaction and related expenses.
The unit of DCP Midstream LLC is a Denver-based joint venture between Spectra Energy and ConocoPhillips.
| Issuer: | DCP Midstream Operating LP
|
| Guarantor: | DCP Midstream Partners, LP
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | March 15, 2023
|
| Bookrunners: | RBC Capital Markets LLC, RBS Securities Inc., SunTrust Robinson Humphrey Inc. (active), Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., U.S. Bancorp Investments Inc. (passive)
|
| Co-managers: | DNB Markets Inc., Scotia Capital USA Inc.
|
| Coupon: | 3.875%
|
| Price: | 98.718
|
| Yield: | 4.032%
|
| Spread: | Treasuries plus 198 bps
|
| Call: | Make-whole at Treasuries plus 30 bps to Dec. 15, 2022, par call after
|
| Trade date: | March 11
|
| Settlement date: | March 14
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
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