New Issue: MarkWest Energy upsized $225 million 10-year notes yield 6 7/8%

By Paul A. Harris

St. Louis, Oct. 19 - MarkWest Energy Partners LP in conjunction with MarkWest Energy Finance Corp. priced an upsized $225 million issue of 10-year senior notes (B1/B+) at par on Tuesday to yield 6 7/8%, according to market sources.

Price talk was 7% to 7¼%.

JP Morgan and RBC Capital Markets ran the books for the Rule 144A issue. Fortis, Jefferies & Co., Lehman Brothers, Piper Jaffray, SG Securities and Wachovia Securities were the co-managers.

Proceeds will be used to repay the company's revolving credit facility.

The issuer is a Denver natural gas production and transportation company.

Issuer:	MarkWest Energy Partners LP/Finance Corp.
Amount:	$225 million (increased from $200 million)
Maturity:	Nov. 1, 2014
Security description:	Senior notes
Bookrunners:	JP Morgan, RBC Capital Markets
Co-managers:	Fortis, Jefferies & Co., Lehman Brothers, Piper Jaffray, SG Securities, Wachovia Securities
Coupon:	6 7/8%
Price:	Par
Yield:	6 7/8%
Spread:	285 basis points
Call features:	Make-whole call at Treasuries plus 50 basis points until Nov. 1, 2009, then callable at 103.438, 102.292, 101.146, par on or after Nov. 1, 2012
Equity clawback:	Until Nov. 1, 2007 for 35% at 106.875
Pricing date:	Oct. 19
Settlement date:	Oct. 25
Ratings:	Moody's: B1
	Standard & Poor's: B+
Price talk:	7%-7¼%

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