Published on 1/11/2017 in the Prospect News Investment Grade Daily.
New Issue: Energy Transfer Partners sells $1.5 billion senior notes in two parts
By Cristal Cody
Eureka Springs, Ark., Jan. 11 – Energy Transfer Partners, LP sold $1.5 billion of senior notes (Baa3/BBB-/BBB-) in two tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $600 million of 4.2% notes due April 15, 2027 at 99.786 to yield 4.224%, or 185 basis points over Treasuries.
A $900 million tranche of 5.3% notes due April 15, 2047 priced with a spread of Treasuries plus 235 bps. The 30-year notes priced at 99.483 to yield 5.333%.
BofA Merrill Lynch, MUFG, TD Securities (USA) LLC, BBVA Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., Natixis Securities Americas LLC, PNC Capital Markets LLC, UBS Securities LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC were the bookrunners.
Proceeds will be used to refinance current maturities and to repay borrowings outstanding under a revolving credit facility, which has a current balance of $1.58 billion of borrowings.
The energy gathering and transportation company is based in Dallas.
| Issuer: | Energy Transfer Partners, LP
|
| Amount: | $1.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, MUFG, TD Securities (USA) LLC, BBVA Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., Natixis Securities Americas LLC, PNC Capital Markets LLC, UBS Securities LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC
|
| Co-managers: | Credit Agricole Securities (USA) Inc., ING Financial Markets LLC
|
| Trade date: | Jan. 11
|
| Settlement date: | Jan. 17
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | April 15, 2027
|
| Coupon: | 4.2%
|
| Price: | 99.786
|
| Yield: | 4.224%
|
| Spread: | Treasuries plus 185 bps
|
| Call features: | Make-whole call before Jan. 15, 2027 at Treasuries plus 30 bps; on or after Jan. 15, 2027 at par
|
|
|
| 30-year notes
|
| Amount: | $900 million
|
| Maturity: | April 15, 2047
|
| Coupon: | 5.3%
|
| Price: | 99.483
|
| Yield: | 5.333%
|
| Spread: | Treasuries plus 235 bps
|
| Call features: | Make-whole call before Oct. 15, 2046 at Treasuries plus 40 bps; on or after Oct. 15, 2046 at par
|
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