By Cristal Cody
Tupelo, Miss., June 5 – Energy Transfer Partners, LP priced $3 billion of senior notes (Baa3/BBB-/BBB-) in four tranches on the tight side of guidance on Tuesday, according to a market source.
Energy Transfer Partners priced $500 million of 4.2% notes due Sept. 15, 2023 at a spread of 145 basis points over Treasuries.
The $1 billion tranche of 4.95% 10-year notes priced at a 205 bps over Treasuries spread.
Energy Transfer Partners also sold $500 million of 5.8% notes due June 15, 2038 at a spread of 275 bps over Treasuries.
The final $1 billion tranche of 6% notes due June 15, 2048 priced at a 300 bps over Treasuries spread.
Mizuho Securities USA Inc., MUFG, SMBC Nikko Securities America and TD Securities (USA) LLC were the bookrunners.
Proceeds will be used to repay in full the company’s 2.5% senior notes due June 15, 2018 and 6.7% senior notes due July 1, 2018 and its subsidiary’s 7% senior notes due June 15, 2018, to repay borrowings under its revolving credit facility and for general partnership purposes.
Energy Transfer Partners is a Dallas-based natural gas and propane transportation company.
| Issuer: | Energy Transfer Partners, LP
|
| Amount: | $3 billion
|
| Description: | Senior notes
|
| Bookrunners: | Mizuho Securities USA Inc., MUFG, SMBC Nikko Securities America and TD Securities (USA) LLC
|
| Trade date: | June 5
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 15, 2023
|
| Coupon: | 4.2%
|
| Spread: | Treasuries plus 145 bps
|
| Price guidance: | Treasuries plus 150 bps area, plus or minus 5 bps
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 15, 2028
|
| Coupon: | 4.95%
|
| Spread: | Treasuries plus 205 bps
|
| Price guidance: | Treasuries plus 210 bps area, plus or minus 5 bps
|
|
|
| 20-year notes
|
| Amount: | $500 million
|
| Maturity: | June 15, 2038
|
| Coupon: | 5.8%
|
| Spread: | Treasuries plus 275 bps
|
| Price guidance: | Treasuries plus 280 bps area, plus or minus 5 bps
|
|
|
| 30-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 15, 2048
|
| Coupon: | 6%
|
| Spread: | Treasuries plus 300 bps
|
| Price guidance: | Treasuries plus 305 bps area, plus or minus 5 bps
|
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