MarkWest $200 million 10-year note offering on road, pricing seen late in week

By Paul Deckelman

New York, June 23 - MarkWest Energy Partners, LP will shop its $200 million offering of 10-year senior notes to prospective investors on a roadshow that starts Monday, high yield syndicate sources said. Pricing is expected to take place toward the end of the week.

The notes will be sold by the company and its co-issuer, MarkWest Energy Finance Corp., in a Rule 144A transaction, with registration rights, and under Regulation S. The notes will not be callable for the first five years, except for a make-whole call.

The deal will be brought to market via joint book-running managers RBC Capital Markets, JP Morgan and Wachovia Securities, as well as co-managers A.G. Edwards, Credit Suisse, Fortis Securities, Mizuho International plc, Piper Jaffray & Co. and Societe Generale.

The Denver-based natural gas gathering and transmission company said in a Thursday filing with the Securities and Exchange Commission that the notes would be sold in conjunction with the sale of 3 million common units representing limited partner interest. That portion of the financing is being led by RBC and Wachovia as joint book-runners, along with A.G. Edwards, and co-managers Credit Suisse, JP Morgan, KeyBanc Capital Markets and Stifel Nicolaus

Proceeds from the sale of the bonds and the equity units will be used to repay outstanding credit facility borrowings incurred in connection with the company's recent acquisitions.

MarkWest Energy Partners describes itself as "a publicly traded master limited partnership with a solid core of midstream assets and a growing core of gas transmission assets. It is the largest processor of natural gas in the Northeast and is the largest gas gatherer of natural gas in the prolific Carthage field in east Texas. It also has a growing number of other gas gathering and intrastate gas transmission assets in the Southwest, primarily in Texas and Oklahoma."

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