Global Partners talks $400 million eight-year notes to yield 7%-7¼%; pricing Wednesday

By Paul A. Harris

Portland, Ore., July 24 – Global Partners LP and GLP Finance Corp. talked a $400 million offering of eight-year senior notes (B2/B+) to price with a yield of 7% to 7¼%, according to market sources.

Official talk comes in line with initial talk in the low 7% area, a bond trader said.

Books close at noon ET on Wednesday, and the deal is set to price thereafter.

BofA Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BNP Paribas Securities Corp., Citizens Bank, MUFG and SG Americas Securities LLC are the joint bookrunners for the Rule 144A with registration rights offering.

BMO Securities, Rabo Securities, Santander, Credit Agricole CIB, Capital One, TD Securities and Regions Bank are the co-managers.

The notes become callable after three years at par plus 50% of the coupon and feature a three-year 35% equity clawback and a 101% poison put.

The Waltham, Mass.-based energy supply company plans to use the proceeds to fund the tender for its 6¼% senior notes due 2022 and to pay down debt outstanding under its credit agreement.

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