Published on 2/26/2015 in the Prospect News High Yield Daily.
New Issue: MarkWest prices upsized $650 million tap of 4 7/8% notes at 101.625
By Paul A. Harris
Portland, Ore., Feb. 26 – MarkWest Energy Partners, LP and MarkWest Energy Finance Corp. priced an upsized $650 million add-on to their 4 7/8% senior notes due Dec. 1, 2024 (Ba3/BB/) at 101.625 to yield 4.661% on Thursday, according to an informed source.
The quick-to-market deal was upsized from $500 million.
The reoffer price came near the richer end of the 101.25 to 101.75 price talk.
Joint bookrunner Barclays will bill and deliver for the public offering. BofA Merrill Lynch, Goldman Sachs & Co., Morgan Stanley & Co. LLC, RBC Capital Markets, SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were also joint bookrunners.
The Denver-based natural gas midstream master limited partnership plans to use the proceeds to refinance debt, as well as to pre-fund capital expenditures and for general partnership purposes.
| Issuers: | MarkWest Energy Partners, LP and MarkWest Energy Finance Corp.
|
| Amount: | $650 million, increased from $500 million
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| Maturity: | Dec. 1, 2024
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| Security description: | Add-on to 4 7/8% senior notes due Dec. 1, 2024
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| Bookrunners: | Barclays (bill and deliver), BofA Merrill Lynch, Goldman Sachs & Co., Morgan Stanley & Co. LLC, RBC Capital Markets, SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc., Wells Fargo Securities LLC
|
| Co-managers: | BBVA, Capital One, Citigroup Global Markets Inc., Comerica, J.P. Morgan Securities LLC, Natixis, PNC Capital Markets, SMBC Nikko, UBS Investment Bank
|
| Coupon: | 4 7/8%
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| Price: | 101.625
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| Yield: | 4.661%
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| Call protection: | Par call on Sept. 1, 2024, otherwise non-callable
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| Trade date: | Feb. 26
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| Settlement date: | March 3 with accrued interest
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| Ratings: | Moody's: Ba3
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| Standard & Poor's: BB
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| Distribution: | SEC registered
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| Price talk: | 101.25 to 101.75
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| Marketing: | Quick to market
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| Original issue: | $500 million priced at par on Nov. 18, 2014
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| Fungibility: | Add-on notes will be immediately fungible with the original notes
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| Total issue size: | $1.15 billion
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