By Sheri Kasprzak
New York, Jan. 10 - Energy Transfer Partners, LP priced $2 billion of senior notes in two tranches, according to a term sheet.
The notes (Baa3/BBB-/BBB-) were sold on Monday through joint bookrunners J.P. Morgan Securities LLC, UBS Investment Bank, Credit Suisse (USA) LLC and Wells Fargo Securities LLC.
The co-managers were Bank of America Merrill Lynch, BNP Paribas Securities Corp., RBS Securities Inc., Mitsubishi UFJ Securities, SunTrust Robinson Humphrey Inc., DnB NOR Markets Inc., US Bancorp and PNC Capital Markets LLC.
The offering included $1 billion of 5.2% notes due Feb. 1, 2022, and $1 billion of 6.5% notes due Feb. 1, 2042.
The 10-year notes were priced at a spread of Treasuries plus 325 basis points. The notes priced at 99.758 to yield 5.231%. The notes are callable at par on or after Nov. 1, 2021 and also feature a make-whole call at Treasuries plus 50 bps before Nov. 1, 2021.
The 30-year notes were priced at a spread of Treasuries plus 350 bps. The notes were priced at 99.642 to yield 6.527%. The notes are callable on or after Aug. 1, 2041 and also have a make-whole call at Treasuries plus 50 bps before Aug. 1, 2041.
Proceeds will be used to fund the cash portion of the purchase of Citrus Acquisition, as well as for general partnership purposes.
In the event that the acquisition is not consummated on or before April 17, 2012, or if the merger is terminated at any time before that date, Energy Transfer Partners must redeem the notes at a termination price equal to 101% of the total principal amount of the notes plus accrued and unpaid interest if any to, but excluding, the redemption date.
| Issuer: | Energy Transfer Partners, LP
|
| Issue: | Senior notes
|
| Amount: | $2 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, UBS Investment Bank, Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC
|
| Co-managers: | Bank of America Merrill Lynch, BNP Paribas Securities Corp., RBS Securities Inc., Mitsubishi UFJ Securities, SunTrust Robinson Humphrey Inc., DnB NOR Markets Inc., US Bancorp, PNC Capital Markets LLC
|
| Pricing date: | Jan. 9
|
| Settlement date: | Jan. 17
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 1, 2022
|
| Coupon: | 5.2%
|
| Price: | 99.758
|
| Yield: | 5.231%
|
| Spread: | 325 bps over Treasuries
|
| Call: | At par on or after Nov. 1, 2021; make-whole call at Treasuries plus 50 bps before Nov. 1, 2021
|
| Change-of-control put: | 101%
|
|
|
| 30-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 1, 2042
|
| Coupon: | 6.5%
|
| Price: | 99.642
|
| Yield: | 6.527%
|
| Spread: | 350 bps over Treasuries
|
| Call: | At par on or after Aug. 1, 2041; make-whole call at Treasuries plus 50 bps before Aug. 1, 2041
|
| Change-of-control put: | 101%
|
© 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.
