Buckeye Partners to repay revolver debt via proceeds from new issue

By Sarah Lizee

Olympia, Wash., Nov. 28 – Buckeye Partners, LP intends to repay debt under its revolving credit facility using proceeds from an offering of fixed-to-floating rate junior subordinated notes due 2077, according to a 424B2 filing with the Securities and Exchange Commission.

As of Monday, there was about $357.8 million outstanding under the revolver and the interest rate was a weighted average of 2.74%.

The company said it used those funds for working capital purposes, to finance internal growth activities and acquisitions, including in part to fund the merger of VTTI Energy Partners LP with and into a direct wholly owned subsidiary of VTTI, the repayment of all $125 million of its outstanding 5.125% notes due July 1, and 2017 capital expenditures.

In connection with Buckeye’s option to extend the revolver’s maturity date by one year in September 2016, one lender did not consent to the extension. All amounts due to the declining lender have a maturity date of Sept. 30, 2020. The remainder has a maturity date of Sept. 30, 2021.

Proceeds from the new issue will also be used for general partnership purposes.

The refined petroleum products pipeline system is based in Houston.

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