New Issue: Kinder Morgan prices upsized $1.5 billion senior secured notes in two tranches

By Paul A. Harris

Portland, Ore., Oct. 31 - Kinder Morgan, Inc. upsized its two-part offering of non-callable senior secured notes (Ba2/BB/BB+) to $1.5 billion from $1 billion and priced the quick-to-market deal on Thursday, according to a syndicate source.

The issuance included a $750 million tranche of 7.25-year notes, which priced at par to yield 5%, at the tight end of the 5% to 5 1/8% yield talk.

Kinder Morgan also priced a $750 million tranche of 10-year notes at par to yield 5 5/8%, at the wide end of the 5½% to 5 5/8% yield talk.

Active bookrunner Barclays will bill and deliver. RBC Capital Markets and Wells Fargo Securities LLC were also active bookrunners.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, RBS Securities Inc. and UBS Securities LLC were the passive bookrunners.

The Houston-based pipeline operator plans to use the proceeds to repay revolver debt.

Issuer:	Kinder Morgan, Inc.
Amount:	$1.5 billion, increased from $1 billion
Securities:	Senior secured notes
Active bookrunners:	Barclays (bill and deliver), RBC Capital Markets LLC, Wells Fargo Securities LLC
Passive bookrunners:	Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, RBS Securities Inc., UBS Securities LLC
Co-managers:	DNB Markets Inc., Mitsubishi UFJ Securities (USA) Inc., Natixis Securities Americas LLC, Scotia Capital, SunTrust Robinson Humphrey Inc.
Call protection:	Non-callable
Trade date:	Oct. 31
Settlement date:	Nov. 5
Ratings:	Moody's: Ba2
	Standard & Poor's: BB
	Fitch: BB+
Distribution:	Rule 144A and Regulation S for life
Marketing:	Quick to market
7.25-year notes
Amount:	$750 million
Maturity:	Feb. 15, 2021
Coupon:	5%
Price:	Par
Yield:	5%
Spread:	306.1 bps
Make-whole:	Treasuries plus 50 bps until Jan. 15, 2021, then callable at par
Price talk:	5% to 5 1/8%
10-year notes
Amount:	$750 million
Maturity:	Nov. 15, 2023
Coupon:	5 5/8%
Price:	Par
Yield:	5 5/8%
Spread:	307.3 bps
Make-whole:	Treasuries plus 50 bps until Aug. 15, 2023, then callable at par
Price talk:	5½% to 5 5/8%

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