New Issue: MarkWest Energy sells $200 million 10-year notes to yield 8¾%

By Paul A. Harris

St. Louis, June 30 - MarkWest Energy Partners, LP and MarkWest Energy Finance Corp. priced a $200 million issue of 8½% 10-year senior notes (B2/B) at 98.35 to yield 8¾% on Thursday, according to a syndicate source.

The yield came at the wide end of the 8½% to 8¾% price talk.

RBC Capital Markets, JP Morgan and Wachovia Securities were joint bookrunners for the notes, which were sold via Rule 144A with registration rights and via Regulation S. A.G. Edwards, Credit Suisse, Fortis Securities, Mizuho International, Piper Jaffray and Societe Generale were co-managers.

The Denver-based natural gas gathering and transmission company will use proceeds along with funds from a sale of 3 million common units to repay bank debt.

Issuers:	MarkWest Energy Partners, LP and MarkWest Energy Finance Corp.
Amount:	$200 million
Maturity:	July 15, 2016
Security description:	Senior notes
Bookrunners:	RBC Capital Markets, JP Morgan, Wachovia Securities
Co-managers:	A.G. Edwards, Credit Suisse, Fortis Securities, Mizuho International, Piper Jaffray, Societe Generale
Coupon:	8½%
Price:	98.35
Yield:	8¾%
Spread:	355 bps
Call features:	Make-whole call at Treasuries plus 50 bps until July 15, 2011, then callable at 104.25, 102.833, 101.417, par on and after July 15, 2014
Equity clawback:	35% at 108.50 until July 15, 2009
Trade date:	June 30
Settlement date:	July 6
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A with registration rights and Regulation S
Price talk:	8½% to 8¾%

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