By Andrea Heisinger
Omaha, March 25 - Energy Transfer Partners, LP priced $1.5 billion of senior notes (Baa3/BBB-/BBB-) in three tranches Tuesday, an informed source said.
A $350 million tranche of 6% five-year notes priced at 99.811 to yield 6.045%, or Treasuries plus 345 basis points.
A $600 million tranche of 6.7% 10-year notes priced at 99.706 to yield 6.742%, or Treasuries plus 325 bps.
A $550 million tranche of 7.5% 30-year notes priced at 99.956 to yield 7.59%, or Treasuries plus 330 bps.
All of the tranches have make-whole redemption options of Treasuries plus 50 bps.
Bookrunners were Wachovia Capital Securities LLC, Credit Suisse Securities LLC, J.P. Morgan Securities Inc. and UBS Investment Bank.
Co-managers were Banc of America Securities LLC, BMO Capital Markets, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. Inc., RBS Greenwich Capital and Wells Fargo Securities.
Proceeds will be used to repay outstanding debt under a $500 million term loan, to repay a portion of amounts outstanding under a revolving credit facility, to pay expenses associated with the offering and for general partnership purposes.
The natural gas transportation and storage company is based in Dallas.
| Issuer: | Energy Transfer Partners, LP
|
| Issue: | Senior notes
|
| Amount: | $1.5 billion
|
| Bookrunners: | Wachovia Capital Securities LLC, Credit Suisse Securities LLC, J.P. Morgan Securities Inc., UBS Investment Bank
|
| Co-managers: | Banc of America Securities LLC, BMO Capital Markets, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. Inc., RBS Greenwich Capital, Wells Fargo Securities
|
| Trade date: | March 25
|
| Settlement date: | March 28
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
|
|
| Five-year tranche
|
| Amount: | $350 million
|
| Maturity: | 2013
|
| Coupon: | 6%
|
| Price: | 99.811
|
| Yield: | 6.045%
|
| Spread: | Treasuries plus 345 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
|
|
| 10-year tranche
|
| Amount: | $600 million
|
| Maturity: | 2018
|
| Coupon: | 6.7%
|
| Price: | 99.706
|
| Yield: | 6.742%
|
| Spread: | Treasuries plus 325 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
|
|
| 30-year tranche
|
| Amount: | $550 million
|
| Maturity: | 2038
|
| Coupon: | 7.5%
|
| Price: | 99.956
|
| Yield: | 7.59%
|
| Spread: | Treasuries plus 330 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
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