Published on 10/25/2011 in the Prospect News High Yield Daily.
New Issue: MarkWest Energy sells upsized $700 million 10.5-year 6¼% notes at par
By Paul A. Harris
Portland, Ore., Oct. 25 - MarkWest Energy Partners, LP and MarkWest Energy Finance Corp. priced an upsized $700 million issue of 10.5-year senior notes (Ba3/BB/) at par to yield 6¼% on Tuesday, according to an informed source.
The yield printed at the tight end of the 6¼% to 6 3/8% price talk.
Barclays Capital Inc., BNP Paribas Securities Corp., J.P. Morgan Securities LLC, SunTrust Robinson Humphrey, Inc. and U.S. Bancorp Investments, Inc. were the joint bookrunners for the quick-to-market issue, which was upsized from $500 million.
The Denver-based oil and gas company plans to use the proceeds to fund the tender offer for its 8¾% senior notes, as well as for working capital and general corporate purposes.
| Issuer: | MarkWest Energy Partners, LP and MarkWest Energy Finance Corp.
|
| Amount: | $700 million, increased from $500 million
|
| Maturity: | June 15, 2022
|
| Securities: | Senior notes
|
| Bookrunners: | Barclays Capital Inc., BNP Paribas Securities Corp., J.P. Morgan Securities LLC, SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc.
|
| Co-managers: | Capital One Southcoast, Inc., Comerica Securities, Inc., Natixis Securities Americas LLC, SMBC Nikko Capital Markets Limited
|
| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6¼%
|
| Spread: | 404 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Dec. 15, 2016, then callable at 103.125, 102.083, 101.042, par on and after Dec. 15, 2019
|
| Equity clawback: | 35% at 106.25 until Dec. 15, 2014
|
| Change-of-control put: | 101%
|
| Trade date: | Oct. 25
|
| Settlement date: | Nov. 3
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Distribution: | SEC registered
|
| Price talk: | 6¼% to 6 3/8%
|
| Marketing: | Quick to market
|
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