Genesis Energy sets investor call for $750 million senior notes, guidance is mid-to-high 6% range

By Paul A. Harris

Portland, Ore., July 16 – Genesis Energy LP, along with its wholly owned subsidiary Genesis Energy Finance Corp., scheduled an investor conference call at noon ET on Thursday for purposes of marketing a $750 million public offering of seven-year senior notes, according to a market source.

The deal comes with initial yield guidance in the mid-to-high 6% range and is set to price late Thursday or early Friday.

BofA Merrill Lynch, BMO Capital Markets, Wells Fargo Securities LLC, ABN Amro, BBVA, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets, Scotia, Capital and U.S. Bancorp Investments Inc. are the joint bookrunners.

The notes have a make-whole call at Treasuries plus 50 basis points for the first three years, then become callable at par plus 50% of the coupon.

The Houston-based diversified midstream energy master limited partnership plans to use the proceeds to fund a portion of the acquisition of the offshore pipelines and services business of Enterprise Products Operating LLC and its affiliates.

There is a special mandatory redemption of the notes at par if the acquisition does not close on or prior to Dec. 31, 2015.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.