Published on 11/12/2010 in the Prospect News High Yield Daily.
New Issue: Genesis Energy sells upsized $250 million eight-year notes at par to yield 7 7/8%
By Paul A. Harris
St. Louis, Nov. 12 - Genesis Energy, LP and Genesis Energy Finance Corp. priced an upsized $250 million issue of eight-year senior notes (B3/B+/) at par to yield 7 7/8% on Friday, according to an informed source.
The yield printed in the middle of the 7¾% to 8% price talk.
Bank of America Merrill Lynch, BMO Nesbitt Burns, BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and RBC Capital Markets Corp. were the joint bookrunners for the issue, which was upsized from $200 million.
Proceeds, together with proceeds from an equity offering, will be used to fund a portion of the roughly $330 million purchase price and related transaction costs for the pending acquisition of a 50% equity interest in the Cameron Highway Oil Pipeline Co.
Genesis Energy is a Houston-based diversified midstream energy master limited partnership.
| Issuers: | Genesis Energy, LP and Genesis Energy Finance Corp.
|
| Amount: | $250 million, increased from $200 million
|
| Maturity: | Dec. 15, 2018
|
| Securities: | Senior notes
|
| Bookrunners: | Bank of America Merrill Lynch, BMO Nesbitt Burns, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., RBC Capital Markets Corp.
|
| Co-manager: | US Bancorp
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| Spread: | 565 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Dec. 15, 2014, then callable at 103.938, 101.969, par on and after Dec. 15, 2016
|
| Equity clawback: | 35% at 107.875 until Dec. 15, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 12
|
| Settlement date: | Nov. 18
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 7¾% to 8%
|
| Marketing: | Roadshow
|
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