Published on 2/19/2014 in the Prospect News Investment Grade Daily.
New Issue: Kinder Morgan prices $1.5 billion of senior notes due 2021, 2044
By Aleesia Forni
Virginia Beach, Feb. 19 - Kinder Morgan Energy Partners LP priced $1.5 billion of senior notes (Baa2/BBB/BBB) in two tranches on Wednesday, according to a syndicate source and an FWP filed with the Securities and Exchange Commission.
A $750 million tranche of 3.5% notes due 2021 priced at 99.494 to yield 3.582%, or Treasuries plus 143 basis points.
A $750 million tranche of 5.5% 30-year bonds priced at 99.214, yielding 5.554%. The notes priced with a spread of Treasuries plus 185 bps.
Deutsche Bank Securities Inc., RBS Securities Inc., UBS Securities LLC, Barclays, DnB NOR Markets Inc., Mitsubishi UFJ Securities (USA) Inc., Scotia Capital (USA) Inc. and Wells Fargo Securities LLC were the joint bookrunners.
The Houston-based pipeline operator plans to use the proceeds to repay commercial paper debt and for general partnership purposes.
| Issuer: | Kinder Morgan Energy Partners LP
|
| Issue: | Notes
|
| Amount: | $1.5 billion
|
| Joint bookrunners: | Deutsche Bank Securities Inc., RBS Securities Inc., UBS Securities LLC, Barclays, DnB NOR Markets Inc., Mitsubishi UFJ Securities (USA) Inc., Scotia Capital (USA) Inc., Wells Fargo Securities LLC
|
| Co-managers: | BBVA Securities Inc., Credit Agricole Securities (USA) Inc., Mizuho Securities USA Inc., Natixis Securities Americas LLC, SunTrust Robinson Humphrey, Inc.
|
| Trade date: | Feb. 19
|
| Settlement date: | Feb. 24
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
|
| Notes due 2021
|
| Amount: | $750 million
|
| Maturity: | March 1, 2021
|
| Coupon: | 3.5%
|
| Price: | 99.494
|
| Yield: | 3.582%
|
| Spread: | Treasuries plus 143 bps
|
| Make-whole call: | Treasuries plus 25 bps prior to Jan. 1, 2021, then callable at par
|
|
|
| Notes due 2044
|
| Amount: | $750 million
|
| Maturity: | March 1, 2044
|
| Coupon: | 5.5%
|
| Price: | 99.214
|
| Yield: | 5.554%
|
| Spread: | Treasuries plus 185 bps
|
| Make-whole call: | Treasuries plus 30 bps prior to Sept. 1, 2043, then callable at par
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
