Published on 9/19/2017 in the Prospect News Investment Grade Daily.
New Issue: Sunoco Logistics prices $2.25 billion of guaranteed senior notes in two tranches
By Cristal Cody
Tupelo, Miss., Sept. 19 – Sunoco Logistics Partners Operations LP sold $2.25 billion of guaranteed senior notes (Baa3/BBB-BBB-) in two tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $750 million of 4% 10-year notes at 99.216 to yield 4.096% and a spread of Treasuries plus 185 basis points.
Sunoco priced $1.5 billion of 5.4% 30-year notes at 99.806 to yield 5.413% and a Treasuries plus 260 bps spread.
Bookrunners were Deutsche Bank Securities Inc., PNC Capital Markets LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, BBVA Securities Inc., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc. and SunTrust Robinson Humphrey, Inc.
The notes are guaranteed by Energy Transfer Partners, LP.
Proceeds will be used to redeem all $500 million of Energy Transfer Partners’ 6.5% senior notes due 2021, to repay outstanding borrowings under the company’s $2.5 billion revolving credit facility and for general partnership purposes.
Philadelphia-based Sunoco transports and stores crude oil and natural gas.
| Issuer: | Sunoco Logistics Partners Operations LP
|
| Guarantor: | Energy Transfer Partners, LP
|
| Amount: | $2.25 billion
|
| Description: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities Inc., PNC Capital Markets LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, BBVA Securities Inc., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc. and SunTrust Robinson Humphrey, Inc.
|
| Co-managers: | CIBC World Markets Corp. Fifth Third Securities, Inc. and Scotia Capital (USA) Inc.
|
| Trade date: | Sept. 19
|
| Settlement date: | Sept. 21
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Oct. 1, 2027
|
| Coupon: | 4%
|
| Price: | 99.216
|
| Yield: | 4.096%
|
| Spread: | Treasuries plus 185 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps before July 1, 2027; thereafter at par
|
|
|
| 30-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Oct. 1, 2047
|
| Coupon: | 5.4%
|
| Price: | 99.806
|
| Yield: | 5.413%
|
| Spread: | Treasuries plus 260 bps
|
| Call features: | Make-whole call at Treasuries plus 40 bps before April 1, 2047; thereafter at par
|
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