New Issue: Genesis Energy prices $750 million eight-year notes to yield 7¾%

By Paul A. Harris

Portland, Ore., Jan. 9 – Genesis Energy, LP and Genesis Energy Finance Corp. priced a $750 million issue of eight-year senior notes (B1/B+) at par to yield 7¾% on Thursday, according to a syndicate source.

The yield printed at the wide end of the 7½% to 7¾% yield talk, and wide to initial guidance in the mid-7% area.

BMO Capital Markets was the left lead bookrunner.

The Houston-based midstream energy master limited partnership plans to use the proceeds to refinance its 6¾% notes 2021 bonds and certain drawings under its revolving credit facility.

Issuers:	Genesis Energy, LP & Genesis Energy Finance Corp.
Amount:	$750 million
Maturity:	Feb. 1, 2028
Securities:	Senior notes
Left bookrunner:	BMO Capital Markets
Joint bookrunners:	SMBC Nikko Securities America Inc., Wells Fargo Securities LLC, ABN Amro Inc., BBVA Securities Inc., BNP Paribas Securities Corp., BofA Securities Inc., Capital One Securities Inc., DNB Markets, Fifth Third Securities Inc., RBC Capital Markets LLC, Regions Securities LLC and Scotia Capital (USA) Inc.
Co-managers:	BOK Financial Securities, Comerica Securities Inc., Raymond James & Associates
Coupon:	7¾%
Price:	Par
Yield:	7¾%
Spread:	595 basis points
First call:	Make-whole call at Treasuries plus 50 bps until Feb. 1, 2023, then callable at 105.813
Equity clawback:	35% at 107.75 until Feb. 1, 2023
Trade date:	Jan. 9
Settlement date:	Jan. 16
Ratings:	Moody's: B1
	S&P: B+
Distribution:	SEC registered
Price talk:	7½% to 7¾%

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