By Aleesia Forni
Virginia Beach, March 5 – Energy Transfer Partners LP priced $2.5 billion of senior notes (Baa3/BBB-/BBB-) in three tranches on Thursday, according to a market source.
A $1 billion tranche of 4.05% notes due 2025 sold with a spread of 195 basis points over Treasuries. Pricing was at 99.918 to yield 4.06%.
The notes sold at the tight end of guidance set in the 200 bps area over Treasuries.
A second tranche was $500 million of 4.9% notes due 2035 priced at 99.81 to yield 4.915%, or Treasuries plus 220 bps.
The notes priced at the tight end of guidance in the Treasuries plus 225 bps area.
Finally, $1 billion of 5.15% notes due 2045 sold at 99.772 to yield 5.165%, or Treasuries plus 245 bps.
Guidance was set in the 250 bps area over Treasuries.
Citigroup Global Markets Inc., RBC Capital Markets LLC and UBS Investment Bank were the joint bookrunners.
Proceeds will be used to repay borrowings outstanding under a revolving credit facility, to fund growth capital expenditures and for general partnership purposes.
The energy gathering and transportation company is based in Dallas.
| Issuer: | Energy Transfer Partners LP
|
| Issue: | Senior notes
|
| Amount: | $2.5 billion
|
| Bookrunners: | Citigroup Global Markets Inc., RBC Capital Markets LLC, UBS Investment Bank
|
| Trade date: | March 5
|
| Settlement date: | March 12
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | March 15, 2025
|
| Coupon: | 4.05%
|
| Price: | 99.918
|
| Yield: | 4.06%
|
| Spread: | 195 bps over Treasuries
|
| Price talk: | 200 bps area, tightened from 210 bps area
|
| Make-whole call: | 30 bps prior to Dec. 15, 2024, then callable at par
|
|
|
| 20-year notes
|
| Amount: | $500 million
|
| Maturity: | March 15, 2035
|
| Coupon: | 4.9%
|
| Price: | 99.81
|
| Yield: | 4.915%
|
| Spread: | 220 bps over Treasuries
|
| Price talk: | 225 bps area, tightened from 235 bps area
|
| Make-whole call: | 35 bps prior to Sept. 15, 2034, then callable at par
|
|
|
| 30-year bonds
|
| Amount: | $1 billion
|
| Maturity: | March 15, 2045
|
| Coupon: | 5.15%
|
| Price: | 99.772
|
| Yield: | 5.165%
|
| Spread: | 245 bps over Treasuries
|
| Price talk: | 250 bps area
|
| Make-whole call: | 40 bps prior to Sept. 15, 2044, then callable at par
|
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