Martin Midstream talks $400 million 11½% secured notes due 2028 at 97; pricing Tuesday

By Paul A. Harris

Portland, Ore., Jan. 31 – Martin Midstream Partners LP and Martin Midstream Finance Corp. talked a $400 million offering of senior secured second-lien notes due 2028 (Caa1/B/B) with an 11½% coupon at an original issue discount of 97, according to a syndicate source.

Books close at 1 p.m. ET on Tuesday, and the Rule 144A and Regulation S deal is set to price thereafter.

Wells Fargo Securities LLC is the left bookrunner. RBC Capital Markets LLC is the joint bookrunner.

Comerica Securities Inc., BOK Financial Securities Inc. and Stifel Nicolaus & Co. Inc. are the co-managers.

The eight-year notes come with 2.5 years of call protection, following which they become callable for the ensuing six months at par plus the full coupon. The call premium declines to par plus 50% of the coupon for the following 12 months. Thereafter the notes will be callable at par.

The Kilgore, Tex.-based midstream services provider plans to use the proceeds plus its new first-lien revolver to refinance all of its existing 1.5-lien and second-lien secured notes and to pay off its existing first-lien revolver.

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