By Paul A. Harris
Portland, Ore., June 25 - Gibson Energy Inc. completed a $750 million equivalent dual-currency senior notes transaction (Ba3/BB) on Tuesday, according to a syndicate source.
The Calgary, Alta.-based independent midstream operator launched and priced a $500 million tranche of 6¾% eight-year notes at 98.476 to yield 7%.
The yield printed 12.5 basis points higher than the wide end of yield talk that was set in the 6¾% area. The reoffer price came in line with discount talk of approximately 1.5 points.
In addition Gibson Energy launched and priced a C$250 million tranche of 7% seven-year notes at 98.633 to yield 7¼%. The yield printed on top of yield talk that had the Canadian dollar-denominated tranche coming 25 bps behind the yield of the U.S. dollar-denominated notes. The reoffer price came in the richer part of the range of discount talk of approximately 1.5 points.
Global coordinator and lead bookrunner RBC Capital Markets will bill and deliver. J.P. Morgan Securities LLC was also a global coordinator and lead bookrunner.
BMO Capital Markets Corp., CIBC World Markets, Citigroup Global Markets, Credit Suisse Securities (USA) LLC and Nomura were the joint bookrunners for the dollar-denominated notes.
BMO, CIBC, Citigroup and Credit Suisse were the joint bookrunners for the Canadian dollar-denominated notes.
Proceeds will be used to repay the company's term loan B and for general corporate purposes.
| Issuer: | Gibson Energy Inc.
|
| Securities: | Senior notes
|
| Global coordinators and lead bookrunners: | RBC Capital Markets (bill and deliver), J.P. Morgan Securities LLC
|
| Co-managers: | Scotia Capital, NBF, TD Securities
|
| Trade date: | June 25
|
| Settlement date: | June 28
|
| Ratings: | Moody's: Ba3
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| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| U.S. dollar-denominated notes
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| Face amount: | $500 million
|
| Proceeds: | $492.4 million
|
| Maturity: | July 15, 2021
|
| Joint bookrunners: | BMO Capital Markets Corp., CIBC World Markets, Citigroup Global Markets, Credit Suisse Securities (USA) LLC, Nomura
|
| Coupon: | 6¾%
|
| Price: | 98.476
|
| Yield: | 7%
|
| Spread: | 480 bps
|
| First call: | July 15, 2016 at 105.063
|
| Equity clawback: | 35% at 106.75 until July 15, 2016
|
| Price talk: | 6¾% area yield including approximately 1.5 points OID
|
|
|
| Canadian dollar-denominated notes
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| Face amount: | C$250 million
|
| Proceeds: | C$246.6 million
|
| Maturity: | July 15, 2020
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| Joint bookrunners: | BMO, CIBC, Citigroup, Credit Suisse
|
| Coupon: | 7%
|
| Price: | 98.633
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| Yield: | 7¼%
|
| Spread: | 504 bps
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| First call: | July 15, 2016 at 105.25
|
| Equity clawback: | 35% at 107.0 until July 15, 2016
|
| Price talk: | 25 bps behind the U.S. dollar-denominated notes, including approximately 1.5 points OID
|
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