By Aleesia Forni
Virginia Beach, March 10 - DCP Midstream Operating LP priced $725 million of senior notes in two tranches due 2019 and 2044, according to a market source and an FWP filed with the Securities and Exchange Commission.
There was a $325 million tranche of 2.7% notes due 2019 priced at 99.41 to yield 2.826%, or Treasuries plus 120 basis points.
A second tranche was $400 million of 5.6% 30-year bonds sold with a spread of 195 bps over Treasuries.
Pricing was at 99.006 to yield 5.669%.
The notes are guaranteed by DCP Midstream Partners LP.
RBS Securities Inc., SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc., J.P. Morgan Securities LLC, RBC Capital Markets Inc. and Wells Fargo Securities LLC were the joint bookrunners.
Proceeds will be used to fund the purchase of a 33.33% membership interest in each of two separate NGL pipeline entities, the remaining 20% interest in DCP SC Texas GP and a 100% interest in two cryogenic natural gas processing plants located in Weld County, Colo., from DCP Midstream LLC through its affiliates.
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: | $725 million
|
| Joint bookrunners: | RBS Securities Inc., SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc., J.P. Morgan Securities LLC, RBC Capital Markets Inc., Wells Fargo Securities LLC
|
| Co-managers: | BBVA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., DNB Markets, Inc., Mitsubishi UFJ Securities (USA), Inc., Scotia Capital (USA) Inc.
|
| Trade date: | March 10
|
| Settlement date: | March 13
|
| Distribution: | SEC-registered
|
|
|
| Notes due 2019
|
| Amount: | $325 million
|
| Maturity: | April 1, 2019
|
| Coupon: | 2.7%
|
| Price: | 99.41
|
| Yield: | 2.826%
|
| Spread: | Treasuries plus 120 bps
|
| Make-whole call: | Treasuries plus 20 bps prior to March 1, 2019, then callable at par
|
|
|
| Notes due 2044
|
| Amount: | $400 million
|
| Maturity: | April 1, 2044
|
| Coupon: | 5.6%
|
| Price: | 99.006
|
| Yield: | 5.669%
|
| Spread: | Treasuries plus 195 bps
|
| Make-whole call: | Treasuries plus 30 bps prior to Oct. 1, 2043
|
© 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.
