By Andrea Heisinger
Omaha, Feb. 5 - Kinder Morgan Energy Partners LP priced $900 million of notes (Baa2/BBB/BBB) in two tranches Tuesday, an informed source said.
The company sold a $600 million tranche of 5.95% 10-year notes at 99.791 to yield 5.978%, or Treasuries plus 240 basis points. The notes have a make-whole call at Treasuries plus 40 bps.
The company reopened its 6.95% 30-year notes to add $300 million. The notes priced at 100.093 to yield 6.942%, or Treasuries plus 260 bps. The notes have a make-whole call at Treasuries plus 30 bps.
Total issuance for the reopened notes is now $850 million, including $550 million issued June 21, 2007.
Bookrunners were Wachovia Capital Securities LLC and RBS Greenwich Capital.
Co-managers were Lazard Capital Markets LLC, Banc of America Securities, LLC, Barclays Capital Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., DnB NOR Markets Inc., Lehman Brothers Inc., RBC Capital Markets Corp. and TD Securities (USA) LLC.
Proceeds will be used to repay short-term commercial paper and for general partnership purposes.
The pipeline company is based in Houston.
| Issuer: | Kinder Morgan Energy Partners LP
|
| Issue: | Notes
|
| Amount: | $900 million
|
| Bookrunners: | Wachovia Capital Securities LLC, RBS Greenwich Capital
|
| Co-managers: | Lazard Capital Markets LLC, Banc of America Securities, LLC, Barclays Capital Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., DnB NOR Markets Inc., Lehman Brothers Inc., RBC Capital Markets Corp., TD Securities (USA) LLC
|
| Trade date: | Feb. 5
|
| Settlement date: | Feb. 12
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
|
| 10-year tranche
|
| Amount: | $600 million
|
| Maturity: | Feb. 15, 2018
|
| Coupon: | 5.95%
|
| Price: | 99.791
|
| Yield: | 5.978%
|
| Spread: | Treasuries plus 240 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
|
|
| 30-year tranche
|
| Amount: | $300 million reopened
|
| Maturity: | Jan. 15, 2038
|
| Coupon: | 6.95%
|
| Price: | 100.093
|
| Yield: | 6.942%
|
| Spread: | Treasuries plus 260 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Total issuance: | $850 million, including $550 million issued June 21, 2007
|
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