By Andrea Heisinger
New York, Feb. 23 - Kinder Morgan Energy Partners, LP priced $1.1 billion of senior notes (Baa2/BBB/BBB) in two parts on Wednesday, a market source said.
The $500 million of 3.5% five-year notes priced at 99.982 to yield 3.504% with a spread of Treasuries plus 135 basis points. The notes priced at the tight end of guidance in the range of 135 bps to 140 bps.
The notes have a make-whole call at Treasuries plus 20 bps.
The second part was $600 million of 6.375% 30-year bonds priced at 99.841 to yield 6.387% with a spread of 180 bps over Treasuries. The bonds were priced at the tight end of talk that was in the range of 180 bps to 185 bps.
The bonds have a make-whole call at Treasuries plus 30 bps.
Morgan Stanley & Co. Inc., RBS Securities Inc. and UBS Securities LLC were the active bookrunners. RBC Capital Markets Corp. was a passive bookrunner.
Co-managers were DnB NOR Markets Inc., SunTrust Robinson Humphrey Inc., Natixis Securities North America Inc., SMBC Nikko Capital Markets Ltd., ING Financial Markets LLC, BBVA Securities Inc. and U.S. Bancorp Investments Inc.
Proceeds are going to repay short-term debt and for general partnership purposes.
The pipeline company is based in Houston.
| Issuer: | Kinder Morgan Energy Partners, LP
|
| Issue: | Senior notes
|
| Amount: | $1.1 billion
|
| Bookrunners: | Morgan Stanley & Co. Inc., RBS Securities Inc., UBS Securities LLC (active), RBC Capital Markets Corp. (passive)
|
| Co-managers: | DnB NOR Markets Inc., SunTrust Robinson Humphrey Inc., Natixis Securities North America Inc., SMBC Nikko Capital Markets Ltd., ING Financial Markets LLC, BBVA Securities Inc., U.S. Bancorp Investments Inc.
|
| Trade date: | Feb. 23
|
| Settlement date: | March 4
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | March 1, 2016
|
| Coupon: | 3.5%
|
| Price: | 99.982
|
| Yield: | 3.504%
|
| Spread: | Treasuries plus 135 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 135 to 140 bps
|
|
|
| 30-year bonds
|
| Amount: | $600 million
|
| Maturity: | March 1, 2041
|
| Coupon: | 6.375%
|
| Price: | 99.841
|
| Yield: | 6.387%
|
| Spread: | Treasuries plus 180 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 180 to 185 bps
|
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