By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Feb. 9 – El Paso Natural Gas Co. LLC sold $300 million of 3.5% senior notes due Feb. 15, 2032 on Tuesday, according to a market source.
The notes (BBB/BBB) priced at a spread of 155 basis points over Treasuries compared to talk in the Treasuries plus 175 bps area.
BMO Capital Markets Corp., J.P. Morgan Securities LLC and Truist Securities, Inc. were the bookrunners.
El Paso intends to use the proceeds to repay intercompany debt owed to Kinder Morgan Inc., which it incurred to repay its $260 million of 8.625% senior notes that matured on Jan. 18, as well as for general corporate purposes.
The issuer is a wholly owned subsidiary of Kinder Morgan, which will guarantee the notes. Kinder Morgan is a Houston-based pipeline transportation and energy storage company.
| Issuer: | El Paso Natural Gas Co. LLC
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| Guarantor: | Kinder Morgan Inc.
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| Amount: | $300 million
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| Issue: | Senior notes
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| Maturity: | Feb. 15, 2032
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| Bookrunners: | BMO Capital Markets Corp., J.P. Morgan Securities LLC and Truist Securities, Inc.
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| Coupon: | 3.5%
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| Spread: | 155 bps over Treasuries
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| Trade date: | Feb. 8
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| Ratings: | S&P: BBB
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| Fitch: BBB
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| Talk: | Treasuries plus 175 bps area
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