Published on 4/10/2008 in the Prospect News High Yield Daily.
New Issue: MarkWest Energy upsizes to $400 million, 8¾% 10-year notes price at 99.183 to yield 8 7/8%
By Paul A. Harris
St. Louis, April 10 - MarkWest Energy Partners, LP priced an upsized $400 million issue of 8¾% 10-year senior notes (B2/B) at 99.183 to yield 8 7/8% on Thursday, according to a market source.
The yield was printed at the tight end of the 9% area price talk.
J.P. Morgan Securities Inc., RBC Capital Markets and Wachovia Securities are joint bookrunners for the Rule 144A with registration rights issue, which was upsized from $250 million and which generated $396.732 million of proceeds.
The partnership intends to use about $150 million of the proceeds to partially fund its 2008 organic growth capital budget. Proceeds will also be used to repay a portion of its term loan.
The Denver-based natural gas gathering and transmission company also announced on Tuesday that it has priced an offering of 5 million common units representing limited partner interests at $31.15 per unit. The proceeds, approximately $149.5 million, will be used to partially fund its 2008 organic growth budget.
Pending that use, the partnership intends to apply a portion of the proceeds to pay down its revolving credit facility.
| Issuer: | MarkWest Energy Partners, LP
|
| Face amount: | $400 million, increased from $250 million
|
| Proceeds: | $396.732 million
|
| Maturity: | April 15, 2018
|
| Security description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities Inc., RBC Capital Markets, Wachovia Securities
|
| Co-managers: | Banc of America Securities LLC, Credit Suisse, Deutsche Bank Securities, Fortis Investments, SunTrust Robinson Humphrey
|
| Coupon: | 8¾%
|
| Price: | 99.183
|
| Yield: | 8 7/8%
|
| Spread: | 535 bps
|
| Call features: | Make-whole at Treasuries plus 50 bps until April 15, 2013, then at 104.375, 102.917, 101.458, par on and after April 15, 2016
|
| Equity clawback: | Until April 15, 2011 for 35% at 108.75
|
| Change-of-control put: | 101
|
| Trade date: | April 10
|
| Settlement date: | April 15
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 9% area
|
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