By Andrea Heisinger
Omaha, March 13 - Equitable Resources Inc. priced $500 million 6.5% 10-year senior notes Thursday to yield Treasuries plus 312.5 basis points, an informed source said.
The notes (Baa1/BBB) priced at 99.321 to yield 6.593%, on top of price talk, which was in the area of 312.5 bps over Treasuries.
There is a make-whole redemption option of Treasuries plus 50 bps.
Bookrunners were Banc of America Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and Lehman Brothers Inc.
Co-managers were Mitsubishi UFJ Securities, PNC Capital Markets, Barclays Capital Inc., BMO Capital Markets, Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc. and Wachovia Capital Securities LLC.
Proceeds will be used to repay an outstanding portion of a $1.5 billion revolving credit facility.
The integrated energy company is based in Pittsburgh.
| Issuer: | Equitable Resources Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | April 1, 2018
|
| Bookrunners: | Banc of America Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities Inc., Lehman Brothers Inc.
|
| Co-managers: | Mitsubishi UFJ Securities, PNC Capital Markets, Barclays Capital Inc., BMO Capital Markets, Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc., Wachovia Capital Securities LLC
|
| Coupon: | 6.5%
|
| Price: | 99.321
|
| Yield: | 6.593%
|
| Spread: | Treasuries plus 312.5 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Trade date: | March 13
|
| Settlement date: | March 18
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB
|
| Price talk: | 312.5 bps area
|
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