Published on 10/19/2010 in the Prospect News High Yield Daily.
New Issue: MarkWest Energy prices $500 million 10-year notes at par to yield 6¾%
By Paul A. Harris
St. Louis, Oct. 19 - MarkWest Energy Partners, LP and MarkWest Energy Finance Corp. priced a $500 million issue of 10-year senior notes (B1/BB-/) at par to yield 6¾% on Tuesday, according to an informed source.
The yield printed on top of the price talk.
Wells Fargo Securities, Bank of America Merrill Lynch, Barclays Capital Inc., Morgan Stanley & Co. Inc. and RBC Capital Markets Corp. were the joint bookrunners for the quick-to-market deal.
Proceeds will be used to fund the tender offer for the company's notes due 2014, as well as to repay bank debt, to provide working capital and for general corporate purposes.
MarkWest is a Denver-based natural gas, natural gas liquids and crude oil company.
| Issuers: | MarkWest Energy Partners, LP and MarkWest Energy Finance Corp.
|
| Amount: | $500 million
|
| Maturity: | Nov. 1, 2020
|
| Securities: | Senior notes
|
| Bookrunners: | Wells Fargo Securities, Bank of America Merrill Lynch, Barclays Capital Inc., Morgan Stanley & Co. Inc., RBC Capital Markets Corp.
|
| Senior co-managers: | BBVA Securities Inc., BNP Paribas Securities Corp., J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., U.S. Bancorp
|
| Co-managers: | Capital One Southcoast, Comerica Securities, Daiwa Capital Markets, Natixis Bleichroeder
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 428 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Nov. 1, 2015, then callable at 103.375, 102.25, 101.125, par on and after Nov. 1, 2018
|
| Equity clawback: | 35% at 106.75
|
| Change-of-control put: | 101%
|
| Trade date: | Oct. 19
|
| Settlement date: | Nov. 2
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | SEC Registered
|
| Price talk: | 6¾% area
|
| Marketing: | Quick to market
|
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