By Andrea Heisinger
New York, Aug. 3 - Kinder Morgan Energy Partners LP sold $750 million of senior notes (Baa2/BBB/BBB) in two tranches on Wednesday, a source close to the offering said.
The $375 million of 4.15% notes due 2022 were priced at 99.914 to yield 4.16% with a spread of Treasuries plus 157 basis points. The tranche sold at the tight end of guidance, which was in the 160 bps area, a source said.
The tranche has a make-whole call at 25 bps over Treasuries.
A $375 million tranche of 5.625% 30-year bonds priced at 99.508 to yield 5.659%, or 180 bps over Treasuries. The bonds were priced in line with talk in the 180 bps area.
The bonds have a make-whole call at 30 bps over Treasuries.
Bookrunners were Barclays Capital Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co., Inc. and SunTrust Robinson Humphrey Inc.
Proceeds will be used to repay commercial paper and for general partnership purposes.
Kinder Morgan last priced bonds in a $1.1 billion sale in two tranches on Feb. 23. The 6.375% 30-year bonds from that offering were priced at 180 bps over Treasuries.
The pipeline services company is based in Houston.
| Issuer: | Kinder Morgan Energy Partners LP
|
| Issue: | Senior notes
|
| Amount: | $750 million
|
| Bookrunners: | Barclays Capital Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co., Inc., SunTrust Robinson Humphrey Inc.
|
| Trade date: | Aug. 3
|
| Settlement date: | Aug. 17
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
|
| Notes due 2022
|
| Amount: | $375 million
|
| Maturity: | March 1, 2022
|
| Coupon: | 4.15%
|
| Price: | 99.914
|
| Yield: | 4.16%
|
| Spread: | Treasuries plus 157 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 160 bps area
|
|
|
| 30-year bonds
|
| Amount: | $375 million
|
| Maturity: | Sept. 1, 2041
|
| Coupon: | 5.625%
|
| Price: | 99.508
|
| Yield: | 5.659%
|
| Spread: | Treasuries plus 180 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 180 bps area
|
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