By Andrea Heisinger
Omaha, July 9 - Magellan Midstream Partners LP priced $250 million 6.4% 10-year senior unsecured notes Wednesday to yield Treasuries plus 255 basis points, according to an FWP filing with the Securities and Exchange Commission.
The notes (Baa2/BBB) priced at 99.992 to yield 6.401%.
There is a make-whole redemption option of Treasuries plus 40 bps.
The notes priced in line with talk that was in the 255 bps area over Treasuries, a source close to the issue said. They were seen at Treasuries plus 253 bps bid, 250 bps offered after pricing.
Bookrunners were Wachovia Capital Markets and Banc of America Securities LLC. The joint lead manager was SunTrust Robinson Humphrey.
Co-managers were Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities Inc., Lazard Capital Markets LLC and UBS Securities LLC.
Proceeds will be used to repay borrowings outstanding under a revolving credit facility, with the balance used for general partnership purposes.
The company provides the transportation, storage and distribution of refined petroleum products and is based in Tulsa, Okla.
| Issuer: | Magellan Midstream Partners LP
|
| Issue: | Senior unsecured notes
|
| Amount: | $250 million
|
| Maturity: | July 15, 2018
|
| Bookrunners: | Wachovia Capital Markets, Banc of America Securities LLC
|
| Joint lead manager: | SunTrust Robinson Humphrey
|
| Co-managers: | Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities Inc., Lazard Capital Markets LLC, UBS Securities LLC
|
| Coupon: | 6.4%
|
| Price: | 99.992
|
| Yield: | 6.401%
|
| Spread: | Treasuries plus 255 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Trade date: | July 9
|
| Settlement date: | July 14
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Price talk: | 255 bps area
|
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