Published on 6/9/2014 in the Prospect News Canadian Bonds Daily and Prospect News High Yield Daily.
New Issue: Gibson Energy sells $350 million equivalent senior notes in two parts
By Paul A. Harris
Portland, Ore., June 9 – Gibson Energy Inc. priced $350 million equivalent of senior notes (Ba3/BB/) in a quick-to-market two-part transaction on Monday, according to a syndicate source.
The deal included a $50 million add-on to the company’s 6¾% senior notes due July 15, 2021, which priced at 108 to yield 4.942%. The reoffer price came on top of price talk.
In addition Gibson Energy priced a C$300 million tranche of 5 3/8% eight-year notes at par to yield 5.374%. The yield printed in the middle of the 5¼% to 5½% yield talk.
Global coordinator RBC Capital Markets will bill and deliver. BMO Securities was also a global coordinator, J.P. Morgan Securities LLC and Citigroup Global Markets Inc. were joint bookrunners.
The Calgary, Alta.-based independent midstream operator plans to use the proceeds to fully repay its revolver, excluding its letters of credit, as well as to fund capital expenditures and for general corporate purposes.
| Issuer: | Gibson Energy Inc.
|
| Amount: | $50 million and C$300 million
|
| Trade date: | June 9
|
| Settlement date: | June 12
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Marketing: | Quick to market
|
|
|
| Dollar-denominated notes
|
| Amount: | $50 million
|
| Maturity: | July 15, 2021
|
| Security description: | Add-on to 6¾% senior notes due July 15, 2021
|
| Global coordinators: | RBC Capital Markets LLC (bill and deliver), BMO Securities
|
| Joint bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc.
|
| Co-managers: | Scotia Capital, CIBC World Markets, TD Securities, Credit Suisse Securities (USA) LLC, NBF, Nomura
|
| Coupon: | 6¾%
|
| Price: | 108
|
| Yield to worst: | 4.942%
|
| Spread: | 357 bps
|
| First call: | July 15, 2016 at 105.063
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 108 area
|
| Original issue: | $500 million priced at 98.476 to yield 7% on June 25, 2013
|
| Fungibility: | Add-on notes will be immediately fungible with the original notes
|
| Total issue size: | $550 million
|
|
|
| Canadian dollar-denominated notes
|
| Amount: | C$300 million
|
| Maturity: | July 15, 2022
|
| Global coordinators: | RBC Capital Markets LLC, BMO Securities
|
| Joint bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc.
|
| Co-managers: | Scotia Capital, CIBC World Markets, TD Securities, Credit Suisse Securities (USA) LLC, NBF
|
| Coupon: | 5 3/8%
|
| Price: | Par
|
| Yield: | 5.374%
|
| Spread: | 330 bps
|
| First call: | July 15, 2017 at 104.031
|
| Distribution: | Rule 144A-eligible private placement
|
| Price talk: | 5¼% to 5½%
|
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