New Issue: Kinder Morgan prices upsized $800 million 5.05% notes due 2046 at 240 bps spread

By Aleesia Forni

Virginia Beach, Feb. 23 – Kinder Morgan Inc. sold an upsized $800 million issue of 5.05% senior notes due Feb. 15, 2046 on Monday with a spread of Treasuries plus 240 basis points, according to an informed source and an FWP filed with the Securities and Exchange Commission.

The notes (Baa3/BBB-/BBB-) sold at the tight end of price talk.

Pricing was at 99.784 to yield 5.064%.

The bookrunners were Morgan Stanley & Co. LLC, RBC Capital Markets LLC, RBS Securities Inc., DNB Markets, MUFG, Mizuho Securities, Scotia Capital (USA) Inc., SMBC Nikko and SunTrust Robinson Humphrey Inc.

Proceeds will be used to repay borrowings under the company’s revolving credit facility and commercial paper debt and for general corporate purposes.

Kinder Morgan is a Houston-based pipeline operator.

Issuer:	Kinder Morgan Inc.
Amount:	$800 million, upsized from $750 million
Description:	Senior notes
Maturity:	Feb. 15, 2046
Bookrunners:	Morgan Stanley & Co. LLC, RBC Capital Markets LLC, RBS Securities Inc., DNB Markets, MUFG, Mizuho Securities, Scotia Capital (USA) Inc., SMBC Nikko, SunTrust Robinson Humphrey Inc.
Co-managers:	BBVA Securities Inc., CIBC World Markets Corp., Natixis Securities Americas LLC, Regions Securities LLC
Coupon:	5.05%
Price:	99.784
Yield:	5.064%
Spread:	240 bps
Make-whole call:	40 bps prior to Aug. 15, 2045, then callable at par
Trade date:	Feb. 23
Settlement date:	Feb. 26
Ratings:	Moody’s: Baa3
	Standard & Poor’s: BBB-
	Fitch: BBB-
Distribution:	SEC registered
Price talk:	245 bps area, tightened from 255 bps to 260 bps area

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